Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please Answer the following question and please fill out and label all portions of the table Milano Pizza is a small neighborhood pizzeria that has

Please Answer the following question and please fill out and label all portions of the table

image text in transcribedimage text in transcribed

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 driversthe number of pizzas sold and the number of deliveries made. The pizzeria's cost formulas appear below: Fixed Cost per Month Cost per Pizza Cost per Delivery $ 5.00 $ 6,250 $ 780 $ 1.00 Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 2.80 $ 2.00 $ 800 $ 536 $ 2,210 $ 900 $ 0.10 In November, the pizzeria budgeted for 2,070 pizzas at an average selling price of $16 per pizza and for 230 deliveries. Data concerning the pizzeria's actual results in November were as follows: Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Actual Results 2,170 210 $ 35,440 $ 10,270 $ 6,190 $ 970 $ 588 $ 1,020 $ 536 $ 2,210 $ 892 Required: 1. Complete the flexible budget performance report that shows both revenue and spending variances and activity 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.) Required: 1. Complete the flexible budget performance report that shows both revenue and spending variances and activity 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 Flexible Budget Performance Report For the Month Ended November 30 Actual Revenue and Spending Flexible Results Variances Budget 2,170 210 $ 35,440 F Activity Variances Planning Budget Pizzas Deliveries Revenue Expenses: Pizza ingredients Kitchen staff 10,270 6,190 Utilities 970 588 1,020 536 Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Total expense Net operating income 2.210 892 0 0 22,676 12,764 $ $ 0 $ 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Principles

Authors: Howard F. Stettler

3rd Edition

0130521183, 9780130521187

More Books

Students also viewed these Accounting questions