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Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services.
Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria's owner has determined that the shop has two major cost drivers-the number of pizzas sold and the number of deliveries made The pizzeria's cost formulas appear below. Cost Fixed Cost per Month per Pizza Cost per Delivery $4.40 $6.130 $ 720 $0.40 ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation $3.20 $1.40 $ 740 $ 488 $2,090 $ 840 Miscellaneous $0.20 In November, the pizzeria budgeted for 1890 pizzas at an average selling price of $18 per pizza and for 250 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Pizzas Deliveries 1.990 230 Revenue Pizza ingredients kitchen statt Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $36, 480 $ 9, 190 $ 6,070 $ 940 $ 736 $1,008 2.090 856 $ Required: L Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November (indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None for no effect (.e., zero variance). Input all amounts as positive values.) Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Actual Flexible Results Budget 1.990 Planning Budget Pizzas Deliveries $ 36,4801 9,190 6.0701 9407 7361 Revenue Expenses: Pizza ingredients Kitchen staff Uitles Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Total expense Net operating income 1,008 498 2,090 956 21.378 $ 15,102
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