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The things in red are wrong! Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering
The things in red are wrong!
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 driversthe number of pizzas sold and the number of deliveries made. The pizzeria's cost formulas appear below: Fixed Cost Cost per Pizza $ 4.50 Cost per Delivery per Month $6,370 $ 840 $ 0.60 $ Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $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 were as follows: Actual Results 2,350 190 Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 52,480 $ 11,350 6,310 $ 1,000 646 $ 1,032 $ 584 $ 2,330 $ 928 ta ta ta ta ta ta ta ta ta 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.) Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Actual Results Revenue & Spending Variances Flexible Budget 2,350 2,350 190 190 Activity Variances Pizzas Deliveries Planning Budget 2250 210 52,480 $ 780 F $ 51,700 $ 2,200 F $ 49,500 $ Revenue $ Expense: Pizza ingredients $ Kitchen Staff $ Utilities Delivery Person $ Delivery Vechicle $ Equipment Depreciation $ Rent $ Miscellaneous $ Total expense $ Net Operaring Income $ 450 U None 60 U (68) F 150 F $ 11,350 $ 6,310 $ 1,000 $ 646 $ 1,032 $ 584 $ 2,330 $ 928 $ 24,180 $ 28,300 $ 775 U (60) F (1,250) F None (3,353) F None None (267) F (4,155) F 4,935 F $ $ $ $ $ $ $ $ $ $ 10,575 $ 6,370 $ 2,250 $ 646 $ 4,385 $ 584 $ 2,330 $ 1,195 $ 28,335 $ 23,365 $ $ $ $ $ $ $ $ $ $ $ 10,125 6,370 2,190 714 4,235 584 2,330 1,185 27,733 21,767 None None 10 U 602 U 1,598 FStep by Step Solution
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