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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

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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: Tixed cost cost per per Month Pizza cost per Delivery $6,350 $ 830 $ 0.50 Pizza ingredients Kitchen statt Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $3.30 $1.40 $ 850 576 $2,310 $ 950 $ 0.25 In November, the pizzeria budgeted for 2,220 pizzas at an average selling price of $21 per pizza and for 200 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Results 2.320 Pizzas Deliveries Revenue Pizza ingredients Kitchen start Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 49,490 $ 11, 170 $ 6.290 $ 995 594 $ 1.030 $ 576 $ 2,310 922 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 Pizza Flexible Budget Performance Report Flexible Budget Planning Budget Actual Results 2.320 180 Pizzas Deliveries Revenue $ 49,4901 Expenses: Pizza ingredients Kitchen staff | 11,170 6,290 995 594 | DIT Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscelaneous Total expense Net operating income 576 2,310| 922 23,887 25,603 $

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