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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.

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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. The pizzeria's owner has determined that the shop has two major cost driversthe number of pizzas sold and the number of deliveries made. The pizzeria's cost formulas appear below: Fixed Cost per Month Cost per Pizza $ 4.30 cost per Delivery $6,110 $ 710 $ 0.30 Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $3.10 $1.30 $ 730 $ 480 $2,070 $ 830 $ 0.15 In November, the pizzeria budgeted for 1,860 pizzas at an average selling price of $17 per pizza and for 240 deliveries. Data concerning the pizzeria's actual results in November appear below: Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Actual Results 1,960 220 $ 33,970 $ 9,010 $ 6,050 $ 935 $ 682 $ 1,006 $ 480 $ 2,070 $ 850 2 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 Revenue and Spending Results Variances 1,960 Flexible Budget Pizzas Deliveries 220 Revenue $ 33,970 Expenses: Pizza ingredients 9,010 Kitchen staff 6,050 Utilities 935 Delivery person 682 1,006 Delivery vehicle Equipment depreciation 480 Rent 2,070 Miscellaneous Total expense 850 21,083 Net operating income 12,887

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