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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

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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: Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Fixed Cost per Month Cost per Pizza $ 4.00 Cost per Delivery $ 6,050 $ 680 $ 1.00 $ 2.80 $ 700 $ 2.20 $ 456 $ 2,010 $ 800 $ 0.20 In November, the pizzeria budgeted for 1,770 pizzas at an average selling price of $14 per pizza and for 210 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Results 1,870 Pizzas Deliveries Revenue Pizza ingredients Kitchen staff 198 $ 26,800 $ 8,470 $ 5,998 $ 920 Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Required: $ 532 $ 1,000 $ 456 $ 2,010 $ 832 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.) Pizzas Deliveries Revenue Milano Pizza Revenue and Spending Variances For the Month Ended November 30 Actual Results Revenue and Spending Variances Flexible Budget 1,870 190 $ 26,800 Expenses: Pizza ingredients 8,470 Kitchen staff 5,990 Utilities 920 Delivery person 532 Delivery vehicle 1,000 Equipment depreciation 456 Rent 2,010 Miscellaneous 832 Total expense 20,210 Net operating income $ 6,590

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