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. Pizza ingredients Kitchen staff utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Fixed Cost Cost per cost per per Month PIE Delivery $ 3.80 $ 5,220 5 630 $ 0.05 $ 3.50 $ $ 1.50 $ 225 $1.030 5 020 In November the pizzeria budgeted for 1200 pizzas at an avelage selling price of $13.50 per pizza and for 180 deliveries Data concerning the pizzeria's actual results in November were as follows Pizza Deliveries Actual Results 1240 174 517,420 Revenue Pizza ingredients The pizzeria's cost formulas appear below: Fixed Cost per Month Cost per Cost per Pizza $ 3.80 Delivery $ 5,220 $ 630 $ 0.05 Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 3.50 $ 1.50 $ 540 $ 275 $ 1,830 $ 820 $ 0.15 In November, the pizzeria budgeted for 1200 pizzas at an average selling price of $13.50 per pizza and for 180 deliveries Data concerning the pizzeria's actual results in November were as follows: Actual Results Pizzas Deliveries 1,240 174 Revenue Pizza ingredients Kitchen Staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 17,420 $ 4,985 $ 5,281 $ 984 $ 609 $ 655 $ 275 $ 1,830 954 Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous 984 609 655 $ $ $ 275 1,838 954 Required: 1. 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 effect (i.e., zero variance). Input all amounts os positive values.) Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Flexible Budget Planning Budget Pizzas Deliveries Actual Results 1.240 174 $ 17.420 Revenue Expenses Pizza ingredients 4.985 Milano Pizza Flexible Budget Performance Report For tho Month Ended November 30 Flexible Budget Planning Budget Actual Results 1,240 174 Pizzas Deliveries $ 17420 4.985 5,281 984 609 Revenue Expenses Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Total expense Net operating income 655 275 1,830 954 15,573 $ 1.847
