Question
The pizzerias cost formulas appear below: Fixed Cost per Month Cost per Pizza Cost per Delivery Pizza ingredients $ 4.20 Kitchen staff $ 6,310 Utilities
The pizzerias cost formulas appear below:
| Fixed Cost per Month | Cost per Pizza | Cost per Delivery | ||||||||
| Pizza ingredients | $ | 4.20 | ||||||||
| Kitchen staff | $ | 6,310 | ||||||||
| Utilities | $ | 810 | $ | 0.30 | ||||||
| Delivery person | $ | 3.10 | ||||||||
| Delivery vehicle | $ | 830 | $ | 1.20 | ||||||
| Equipment depreciation | $ | 560 | ||||||||
| Rent | $ | 2,270 | ||||||||
| Miscellaneous | $ | 930 | $ | 0.15 | ||||||
In November, the pizzeria budgeted for 2,160 pizzas at an average selling price of $19 per pizza and for 180 deliveries.
Data concerning the pizzerias actual results in November appear below:
| Actual Results | |||
| Pizzas | 2,260 | ||
| Deliveries | 160 | ||
| Revenue | $ | 43,690 | |
| Pizza ingredients | $ | 10,810 | |
| Kitchen staff | $ | 6,250 | |
| Utilities | $ | 985 | |
| Delivery person | $ | 496 | |
| Delivery vehicle | $ | 1,026 | |
| Equipment depreciation | $ | 560 | |
| Rent | $ | 2,270 | |
| Miscellaneous | $ | 910 | |
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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