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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
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 pizzeria's owner has determined that the shop has two major cost drivers-the number of pizzas sold and the number of deliveries made. Data concerning the pizzeria's costs appear below Fixed Cost Cost per Cost per per Month Pizza Delivery $4.10 Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 6,070 $ 690 $ 0.10 $ 2.90 $2.30 $ 710 $ 464 $ 2,030 S 810 S0.05 In November, the pizzeria budgeted for 1,800 pizzas at an average selling price of $15 per pizza and for 220 deliveries. Data concerning the pizzeria's operations in November appear below: Actual Results 1,900 200 $29,130 S 8,650 $ 6,010 S 925 S 580 $ 1,002 $ 464 S 2,030 S 838 Pizzas Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous 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.) Milano Pizza Revenue and Spending Variances For the Month Ended November 30 Actual Revenue and Spending Flexible 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 (.e. zero varlance). Input all amounts as positive values.) Milano Pizza Revenue and Spending Variances For the Month Ended November 30 Actual Results Revenue and Spending Variances Flexible Bud Revenue S 29.130 Expenses Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous 8,650 6,010 925 580 1,002 464 2,030 838 20,499 $8,631 Total expense Net operating income
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