Problem 9-21 More Than One Cost Driver (LO9-2, LO9-3, LO9-4, LO9-5) 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 The pizzeria's cost formulas appear below: Fixed Cost per month Cost per Pizza $ 4.80 Cost per Delivery $5,990 $ 650 $ 0,70 Pizza ingredients Kitchen start Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $3.50 $1.90 $ 670 $ 432 $1,950 $ 770 $ 0.10 In November, the pizzeria budgeted for 1680 pizzas at an average selling price of $19 per pizza and for 180 deliveries. Data concerning the pizzeria's actual results in November appear below. Actual Results 1,780 160 Pizzas Deliveries Revenue Pizza ingredients Kitchen staff utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous 534,410 $ 7,950 $ 5,930 $ 905 $ 560 $ 994 $ 432 1,950 5 Homework 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 (.e., zero variance). Input all amounts as positive values.) Milano Pum leable Tiget Performance Report For the Month Eaded November 10 Revenue and Spending Flexible Variances Budget Activity Variances Budge Puzzas Deliveries Actual Results 1.780 160 Revenue $ 34.410 Expenses Pizza ingredients Kitchen staff Utilities 7.930 5.930 905 560 994 Delivery person Delivery vehicle Equipment depreciation Rent 432 Miscellaneous Total expense Net operating income 1960 814 19.515 14895 s