Verona 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 pizzerias owner has determined that the shop has two major cost driversthe number of pizzas sold and the number of deliveries made. Data concerning the pizzerias costs appear below:

	Fixed Cost per Month		Cost per Pizza	Cost per Delivery
Pizza ingredients			$4.20
Kitchen staff	$	6,090
Utilities	$	700	$0.20
Delivery person				$3.00
Delivery vehicle	$	720		$1.20
Equipment depreciation	$	472
Rent	$	2,050
Miscellaneous	$	820	$0.10

In October, the pizzeria budgeted for 1,830 pizzas at an average selling price of $16.00 per pizza and for 230 deliveries.

Data concerning the pizzerias operations in October appear below:

	Actual Results
Pizzas		1,930
Deliveries		210
Revenue	$	31,520
Pizza ingredients	$	8,830
Kitchen staff	$	6,030
Utilities	$	930
Delivery person	$	651
Delivery vehicle	$	1,004
Equipment depreciation	$	472
Rent	$	2,050
Miscellaneous	$	844

Required:

1.

Complete the flexible budget performance report that shows both activity variances and revenue and spending variances for the pizzeria for October. (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.)

Verona Pizza
Flexible Budget Performance Report
For the Month Ended October 31
	Planning Budget	Activity Variances		Flexible Budget	Revenue and Spending Variances		Actual Results
Revenue	$29,280						$31,520
Expenses:
Pizza ingredients	7,686						8,830
Kitchen staff	6,090						6,030
Utilities	1,066						930
Delivery person	690						651
Delivery vehicle	996						1,004
Equipment depreciation	472						472
Rent	2,050						2,050
Miscellaneous	1,003						844
Total expense	20,053			20,053			20,811
Net operating income	$9,227			$(20,053)			$10,709