Q4

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: Pixed Cost Cost per Cost per $ 4.50 $ 0.60 per Month Pizza Delivery Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $6,370 $ 840 $3.40 $1.50 $ 860 584 $2,330 $ 960 $ 0.10 In November, the pizzeria budgeted for 2,250 pizzas at an average selling price of $22 per pizza and for 210 deliveries Data concerning the pizzeria's actual results in November appear below: Actual Results 2,350 190 Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery persorn Delivery vehicle Equipment depreciation Rent Miscellaneous $52,480 $ 11,350 $ 6,310 $ 1,000 $ 646 $ 1,032 $ 584 $ 2,330 $ 928 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.) Answer is not complete. Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Planning Budget 2,250 210 Actual Results Revenue and Spending Variances Flexible Budget 2,350 190 Pizzas Deliveries Revenue 52,480 $ 780 49,500 Expenses: Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment Rent Miscellaneous 11,350 6,310 1,000 646 1,032 584 2,330 928 24,180 28,300 10,125 ,370 840 714 860 584 2,330 960 24,673 24,827 775 46 113 235 473 60 381 depreciation Total expense Net operating income