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. Data concerning the pizzerias costs appear below:

Fixed Cost per Month

Cost per Pizza

Cost per Delivery

Pizza ingredients

$

4.00

Kitchen staff

$

6,270

Utilities

$

790

$

0.10

Delivery person

$

2.90

Delivery vehicle

$

810

$

2.10

Equipment depreciation

$

544

Rent

$

2,230

Miscellaneous

$

910

$

0.05

In November, the pizzeria budgeted for 2,100 pizzas at an average selling price of $17 per pizza and for 240 deliveries.

Data concerning the pizzerias operations in November appear below:

Actual Results

Pizzas

2,200

Deliveries

220

Revenue

$

38,130

Pizza ingredients

$

10,450

Kitchen staff

$

6,210

Utilities

$

975

Delivery person

$

638

Delivery vehicle

$

1,022

Equipment depreciation

$

544

Rent

$

2,230

Miscellaneous

$

898

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
Revenue	$38,130
Expenses:
Pizza ingredients	10,450
Kitchen staff	6,210
Utilities	975
Delivery person	638
Delivery vehicle	1,022
Equipment depreciation	544
Rent	2,230
Miscellaneous	898
Total expense	22,967
Net operating income	$15,163