Problem 9-19 (Algo) More Than One Cost Driver [LO9-2, LO9-3, LO9-5, LO9-6]

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.

The pizzerias cost formulas appear below:

Fixed Cost per MonthCost per PizzaCost per DeliveryPizza ingredients $ 4.00 Kitchen staff$ 6,050 Utilities$ 680$ 1.00 Delivery person $ 2.80Delivery vehicle$ 700 $ 2.20Equipment depreciation$ 456 Rent$ 2,010 Miscellaneous$ 800$ 0.20

In November, the pizzeria budgeted for 1,770 pizzas at an average selling price of $14 per pizza and for 210 deliveries.

Data concerning the pizzerias actual results in November were as follows:

Actual ResultsPizzas1,870Deliveries190Revenue$ 26,800Pizza ingredients$ 8,470Kitchen staff$ 5,990Utilities$ 920Delivery person$ 532Delivery vehicle$ 1,000Equipment depreciation$ 456Rent$ 2,010Miscellaneous$ 832

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.)