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Milano Pizza Is a small neighborhood pizzerla that has a small area for In-store dining as well as offering take-out and free home delivery services.
Milano Pizza Is a small neighborhood pizzerla that has a small area for In-store dining as well as offering take-out and free home delivery services. The plzzerla's owner has determined that the shop has two major cost drivers-the number of pizzas sold and the number of dellverles made. The plzzerla's cost formulas appear below Fixed Cost Cost per Cost per ivery per Month Pizza De11 Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle 718 Equipment depreciation Rent Miscel1aneous $4.18 $6,87e 69e $0.18 $2.9e $2.3e S 464 $2, $ 81 0.85 In November, the pizzerla budgeted for 1,800 pizzas at an average selling price of $15 per pizza and for 220 dellverles. Data concerning the pizzerla's actual results In November appear below Actual Results 1,988 289 Pizzas Deliveries 29,138 $ 8,658 s 6,01e 925 $ 580 1,882 Equipment depreciation 464 2,838 $ 838 Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Rent Miscel1aneous Required: 1. Complete the flexible budget performance report that shows both revenue and spending varlances and activity varlances for the pizzerla for November. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as posltive values.) Flexible Budget Performance Report For the Month Ended November 30 Flexible Pizzas 130 Expenses Pizza Kitchen staff Utilities 8,650 8,010 925 ents person vehicle 1,002 ent Miscel aneous otal expense 20.499 ncome S 8631 Net
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