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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
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 Cost per Pizza Delivery Pizza ingredients $ 4.10 Kitchen staff $ 6,070 Utilities $ 690 $ 0.10 Delivery person Delivery vehicle $ 710 $ 2.90 $ 2.30 Equipment depreciation Rent $ 464 $ 2,030 Miscellaneous $ 810 $ 0.05 In November, the pizzeria budgeted for 1,800 pizzas at an average selling price of $15 per pizza and for 220 deliveries. Data concerning the pizzeria's actual results in November appear below: Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Actual Results 1,900 200 $29,130 $ 8,650 $ 6,010 $ 925 Delivery vehicle Equipment depreciation Rent Miscellaneous Required: $ 580 $ 1,002 $ 464 $ 838 $ 2,030 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 (l.e., zero variance). Input all amounts as positive values.)
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