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Question 2 ch 10 Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and

Question 2 ch 10

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.

Data concerning the pizzerias costs appear below:

Fixed Cost per Month

Cost per Pizza

Cost per Delivery

Pizza ingredients

$

4.90

Kitchen staff

$

6,230

Utilities

$

770

$

0.90

Delivery person

$

2.70

Delivery vehicle

$

790

$

1.90

Equipment depreciation

$

528

Rent

$

2,190

Miscellaneous

$

890

$

0.20

In November, the pizzeria budgeted for 2,040 pizzas at an average selling price of $15 per pizza and for 220 deliveries.

Data concerning the pizzerias operations in November appear below:

Actual Results

Pizzas

2,140

Deliveries

200

Revenue

$

32,810

Pizza ingredients

$

10,090

Kitchen staff

$

6,170

Utilities

$

965

Delivery person

$

540

Delivery vehicle

$

1,018

Equipment depreciation

$

528

Rent

$

2,190

Miscellaneous

$

886

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.)

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