Question
The pizzerias cost formulas appear below: Fixed Cost per Month Cost per Pizza Cost per Delivery Pizza ingredients $ 4.90 Kitchen staff $ 6,230 Utilities
The pizzerias cost formulas 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 actual results 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 | |
| Milano Pizza | |||||||
| Flexible Budget Performance Report | |||||||
| For the Month Ended November 30 | |||||||
| Actual Results | Flexible Budget | Planning Budget | |||||
| Pizzas | 2,140 | ||||||
| Deliveries | 200 | ||||||
| Revenue | $32,810 | ||||||
| Expenses: | |||||||
| 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 | ||||||
| Total expense | 22,387 | ||||||
| Net operating income | |||||||
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Cost Management Accounting And Control
Authors: Don R. Hansen, Maryanne M. Mowen
4th Edition
0324069731, 978-0324069730
