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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 dellveries made The plzzerla's cost formulas appear below Fixed Cost Cost per Cost per per Honth izza Delivery Pizza ingredients Kitchen stafi Utilities $ 4.50 $6,370 $ 840 $ 860 $2,330 0.60 $3.40 $1.50 Delivery person Delivery vehicle Equipment depreciation 584 Rent Miscellaneous $ 960 0.10 In November, the pizzerla budgeted for 2,250 plzzas at an average selling price of $22 per pizza and for 210 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Pizzas Deliveries Results 2, 350 190 52,4B0 $ 11,350 $ 6,310 $1,000 $646 $1,032 584 $2,330 928 Revenue Pizza ingredients Kitchen stafi Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Required 1. Complete the flexible budget performance report that shows both revenue and spending varlances and actlvity varlances for the pizzeria for November. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero varlance). Input all amounts as posltive values.)
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