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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: Fixed Cost per Month Cost per Pizza $5.00 Cost per Delivery $6,030 $ 670 $9.90 Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $2.70 $2.10 $ 699 $ 448 $1,990 $ 790 $ 0.15 In November, the pizzeria budgeted for 1740 pizzas at an average selling price of $13 per pizza and for 200 deliveries. Data concerning the pizzeria's actual results in November appear below. Pizzas Deliveries Actual Results 1,840 189 Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 24,530 $ 8,290 $ 5,970 $ 915 $ 486 $ 998 $ 448 $ 1,990 $ 826 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 For the Month Ended November 30 Flexible Budget Actual Results 1,840 180 Planning Budget Pizzas Deliveries Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Flexible Budget Planning Budget Pizzas Deliveries Actual Results 1,840 180 Revenue $ 24,530 Expenses Pizza ingredients Kitchen staff 8,290 5,970 Utilities 915 486 998 Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous 448 1,990 826 Total expense Net operating income 19,923 4,607 $

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