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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

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 deliverles made.
The plzzerla's cost formulas appear below:
In November, the pizzerla budgeted for 1,560 pizzas at an average selling price of $15 per pizza and for 220 deliverles.
Data concerning the plzzerla's actual results in November appear below:
Required:
Compute the revenue and spending varlances for the plzzerla for November. (Indicate the effect of each varlance by selecting "F"
for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero varlance). 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 pizzerias owner has determined that the shop has two major cost driversthe number of pizzas sold and the number of deliveries made.
The pizzerias cost formulas appear below:
Fixed Cost per Month Cost per Pizza Cost per Delivery
Pizza ingredients $ 4.40
Kitchen staff $ 5,910
Utilities $ 610 $ 0.30
Delivery person $ 3.10
Delivery vehicle $ 630 $ 1.50
Equipment depreciation $ 400
Rent $ 1,870
Miscellaneous $ 730 $ 0.15
In November, the pizzeria budgeted for 1,560 pizzas at an average selling price of $15 per pizza and for 220 deliveries.
Data concerning the pizzerias actual results in November appear below:
Actual Results
Pizzas 1,660
Deliveries 200
Revenue $ 25,450
Pizza ingredients $ 7,210
Kitchen staff $ 5,850
Utilities $ 885
Delivery person $ 620
Delivery vehicle $ 986
Equipment depreciation $ 400
Rent $ 1,870
Miscellaneous $ 790
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