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 pizzerias owner has determined that the shop has two major cost driversthe number of pizzas sold and the number of deliveries made.

The pizzerias cost formulas appear below:

	Fixed Cost per Month			Cost per Pizza			Cost per Delivery
Pizza ingredients				$	4.90
Kitchen staff	$	6,010
Utilities	$	660		$	0.80
Delivery person							$	2.60
Delivery vehicle	$	680					$	2.00
Equipment depreciation	$	440
Rent	$	1,970
Miscellaneous	$	780		$	0.10

In November, the pizzeria budgeted for 1,710 pizzas at an average selling price of $20 per pizza and for 190 deliveries.

Data concerning the pizzerias actual results in November appear below:

	Actual Results
Pizzas		1,810
Deliveries		170
Revenue	$	36,800
Pizza ingredients	$	8,110
Kitchen staff	$	5,950
Utilities	$	910
Delivery person	$	442
Delivery vehicle	$	996
Equipment depreciation	$	440
Rent	$	1,970
Miscellaneous	$	820

Required:

1. Compute the revenue and spending 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 (i.e., zero variance). Input all amounts as positive values.)

Milano Pizza
Revenue and Spending Variances
For the Month Ended November 30
	Actual Results	Revenue and Spending Variances		Flexible Budget
Pizzas	1,810
Deliveries	170
Revenue	$36,800
Expenses:
Pizza ingredients	8,110
Kitchen staff	5,950
Utilities	910
Delivery person	442
Delivery vehicle	996
Equipment depreciation	440
Rent	1,970
Miscellaneous	820
Total expense	19,638
Net operating income	$17,162