Problem 8-19A More Than One Cost Driver [LO8-2, LO8-3]

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. Data concerning the pizzerias costs appear below:

	Fixed Cost per Month		Cost per Pizza		Cost per Delivery
Pizza ingredients			$	4.40
Kitchen staff	$	6,130
Utilities	$	720	$	0.40
Delivery person					$	3.20
Delivery vehicle	$	740			$	1.40
Equipment depreciation	$	488
Rent	$	2,090
Miscellaneous	$	840	$	0.20

In November, the pizzeria budgeted for 1,890 pizzas at an average selling price of $18 per pizza and for 250 deliveries.

Data concerning the pizzerias operations in November appear below:

	Actual Results
Pizzas		1,990
Deliveries		230
Revenue	$	36,480
Pizza ingredients	$	9,190
Kitchen staff	$	6,070
Utilities	$	940
Delivery person	$	736
Delivery vehicle	$	1,008
Equipment depreciation	$	488
Rent	$	2,090
Miscellaneous	$	856

Required:

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.)