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Problem 9 - 1 9 ( Algo ) More Than One Cost Driver [ L 0 9 - 2 , LO 9 - 3 ]
Problem Algo More Than One Cost Driver L LO
Milano Pizza is a small neighborhood pizzeria that has a small area for instore dining as well as offering takeout 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:
In November, the pizzeria budgeted for pizzas at an average selling price of $ per pizza and for deliveries.
Data concerning the pizzeria's actual results in November appear below:
Required:
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 ie zero variance Input all amounts as positive values.
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