Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as...
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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 Pizza Cost per Cost per Delivery Pizza ingredients $ 4.40 Kitchen staff $ 6,350 Utilities $ 830 $ 0.50 Delivery person Delivery vehicle $ 850 $ 3.30 $ 1.40 Equipment depreciation $ 576 $ 2,310 $ 950 $ 0.25 Rent Miscellaneous In November, the pizzeria budgeted for 2,220 pizzas at an average selling price of $21 per pizza and for 200 deliveries. Data concerning the pizzeria's actual results in November appear below: Pizzas Deliveries Revenue Actual Results 2,320 180 $ 49,490 Pizza ingredients $ 11,170 $ 6,290 Utilities $ 995 Kitchen staff Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Required: $ 594 $ 1,030 $ 576 $ 2,310 $ 922 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 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 Pizza Cost per Cost per Delivery Pizza ingredients $ 4.40 Kitchen staff $ 6,350 Utilities $ 830 $ 0.50 Delivery person Delivery vehicle $ 850 $ 3.30 $ 1.40 Equipment depreciation $ 576 $ 2,310 $ 950 $ 0.25 Rent Miscellaneous In November, the pizzeria budgeted for 2,220 pizzas at an average selling price of $21 per pizza and for 200 deliveries. Data concerning the pizzeria's actual results in November appear below: Pizzas Deliveries Revenue Actual Results 2,320 180 $ 49,490 Pizza ingredients $ 11,170 $ 6,290 Utilities $ 995 Kitchen staff Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Required: $ 594 $ 1,030 $ 576 $ 2,310 $ 922 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.)
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To compute the revenue and spending variances for Milano Pizza for November well compare the budgete... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0077522940
15th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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