Streeterville Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well offering takeout and free home delivery services. The pizzeria's owner has determined that the shop has two major cost driversthe number of pizzas sold and the number of deliveries made. Data concerning the pizzeria's costs appear below:

Fixed Cost Cost per Cost per

Per Month Pizza Delivery

Pizza ingredients $5.00

Kitchen staff $5,800

Utilities $520 $0.10

Delivery person $2.90

Delivery vehicle $680 $2.10

Equipment depreciation $387

Rent $1,730

Miscellaneous $730 $0.01

In October, the pizzeria budgeted for 2,000 pizzas at an average selling price of $13.00 per pizza and for 190 deliveries.Data concerning the pizzeria's operations in October appear below:

Actual

Results

Pizzas 2,100

Deliveries 190

Revenue $27,840

Pizza Ingredients $10,550

Kitchen staff $5,740

Utilities $855

Delivery person $551

Delivery vehicle $1,233

Equipment depreciation $387

Rent $1,730

Miscellaneous $743

Required:1.Compute the revenue and spending variances for the pizzeria for October.(Input all amounts as positive values.Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance.))

Streeterville Pizza

Revenue and spending Variances

For the month ended October 31

Flexible Budget Actual results Revenue and

spending

variances

Revenue

Expenses:

Pizza Ingredients

Kitchen staff

Utilities

Delivery person

Delivery vehicle

Equipment depr.

Rent

Miscellaneous

Total Expense

Net operating income