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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 drivers-the number of pizzas sold and the number of deliveries made. The pizzeria's cost formulas appear below: Fixed Cost per Month Cost per Pizza Cost per Delivery $ 4.00 $6,270 $ 790 $ 0.10 Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $2.90 $2.10 $ 810 $ 544 $2,230 $ 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 pizzeria's actual results in November were as follows: Actual Results 2,200 220 Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 38,130 $ 10,450 $ 6,210 $ 975 $ 638 $ 1,022 $ 544 $ 2,230 $ 898 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 no effect (i.e., zero variance). Input all amounts as positive values.) 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 no effect (.e., zero variance). Input all amounts as positive values.) Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Revenue and Spending Flexible Variances Budget Activity Variances Actual Results 2,200 220 Planning Budget 2.200 220 Pizzas Deliveries $ $ Revenue $ 1,700 37,400 38,130 400 -1 Expenses Pizza ingredients Kitchen staff 10,450 6.210 U TE 8,800 6,270 0 Utilities 975 None 1.010 F 638 628 None 58 None None 1,022 1,272 F 42 Delivery person Delivery vehicle Equipment depreciation Rent 544 0 None 2,230 None 1,020 2.230 898 315 Miscellaneous Total expense Not operating income 22,967 15,163 16.970 20.430 5,075 $ (3,375) $ $

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