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Use the following information to solve questions 7 and 8. ABC Pizza is a small neighborhood pizzeria that has a small area for in-store dining.
Use the following information to solve questions 7 and 8. ABC Pizza is a small neighborhood pizzeria that has a small area for in-store dining. They also ofte out and free home-delivery services. The pizzeria's owner has determined that the shop has two cost-drivers -- the number of pizzas sold and the number of delivers made. Data concerning the pizzeria's costs appear below: Fixed cost Cost per Cost per per month Pizza ingredients Pizza Delivery Kitchen staff $3.80 $5,200 Utilities $630 $0.05 Delivery person $3.50 Delivery vehicle $540 $1.50 Equipment depreciation $275 Rent $1,830 Miscellaneous $820 $0.15 Total $9.295 In November, the pizzeria budgeted for 1,200 pizzas at an average selling price of $13.50 per pizza and for 180 deliveries. Data concerning the pizzeria's operations in November appear below: Actual Results Pizzas 1,240 Revenue $ 17,420 Deliveries 174 Pizza ingredients $ 4,985 Kitchen staff $ 5,281 Utilities Delivery person Delivery vehicle $ $ $ $ $ $ 984 609 655 275 1,830 954 Equipment depreciation Rent Miscellaneous #8. What is the spending variance for delivery vehicle in November? a) $155 U b) $146 F c) $146 U d) $155 F e) None of the above
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