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Milano Pizza Is a small nelghborhood plzzerla that has a small area for In-store dining as well as offering take-out and free home dellvery services.
Milano Pizza Is a small nelghborhood plzzerla that has a small area for In-store dining as well as offering take-out and free home dellvery services. The plzzerla's owner has determined that the shop has two major cost drivers-the number of plzzas sold and the number of deliverles made The plzzerla's cost formulas appear below: Fixed Cost Cost per Pizza Cost per per Month Delivery Pizza ingredients $ 4.60 Kitchen staff $5,950 $ $ 0.50 utilities 630 Delivery person $3.30 Delivery vehicle Equipment depreciation Rent $1.70 650 416 $1,910 Miscellaneous 75e 0.25 In November, the pizzeria budgeted for 1,620 pizzas at an average selling price of $17 per pizza and for 240 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Results Pizzas 1,720 Deliveries 220 $ 29,810 Revenue Pizza ingredients Kitchen staff 7,57e 5,890 Utilities 895 Delivery person Delivery vehicle Equipment depreciation Rent 726 990 416 1,91e Miscellaneous 882 Required: 1. Complete the flexible budget performance report that shows both revenue and spending varlances and activity varlances for the plzzerla 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 positlve values.)
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