Chapter 9 Canvas Homework - SHOW YOUR WORK FOR CREDIIMultiple Cost Drivers: Salamone's Pizza is a neighborhood pizzeria that has an area for in-store dining aswell as offering take-out and free home delivery services. The pizzeria's owner has determined that the shop hastwo major cost drivers the number of pizzas sold and the number of deliveries made.The pizzeria's cost formulas appear below.Flxed Coat per Month Cost per Piza Cost per Dellvery$ 4.00Plzza IngredlenteKitchen staff$ 6,050S 880Utilitles$ 1.00Dellvery personDellvery vehicile$2.80$2.20S 700S 456$ 2,010$ 800Equipment depreclationRentMlscellaneous$0.20In November, the pizzeria budgeted for 1,770 pizzas at an average selling price of $14 per pizza and for 210deliveries.Data conceming the pizzeria's actual results in November were as follows:Actual Resulte1,870190PlzzasDellverles$ 28,800$ 8,470$ 5,990$ 920$ 532$ 1,000$ 458$ 2,010$ 832RevenuePlzza IngredlentsKitchen ataffUtilitiesDellvery personDellvery vehicleEquipment depreclationRentMlacellaneousRequired:1. Complete the flexible budget performance report below (fill in the missing blanks). It showsrevenue/spending variances, activity variances, and total variances for November. Besides the variances, youmust fill in costs for Utilities and Delivery Vehicle.Indicate the effect of each variance using "F" for favorable, "U" for unfavorable, and "N" for none or no effect.Input all amounts as positive values.Note: The table below includes a "total variance" column. Total Variance is a combination of the other 2variances. It is the difference between the planning budget and the actual results. Revenue &Salamone's PizzaSpendingVarianceFlexibleActivityVariancePlanningBudgetActualTotalFor the Month Ending Nov 30ResultsBudgetVariancePizzas1,8701,8701,770Deliveries190190210Revenue26,800620F 26,18024,780Expenses:Pizza ingredients8,4707,4807,080Kitchen staff5,9906,0506,050UtilitiesDelivery person532532588Delivery vehicleEquipment depreciation456456456Rent2,0102,0102,010Miscellaneous8321,1741,154Total Expense20,21021.37020,950Operating income6.5904.8103.8302,760

A flexible budget performance report compares actual revenues and expenditures to predicted revenues…

ell as offering take-out and free home delivery services. The pizze o major oost driversthe number of pizzas sold and the number e pizzeria's cost formulas appear below. FIxed Cost per Month Coat per Pizza Cootp Pizza Ingredlente Kitchen staff $ 4.00 $6,050 utittes S 80 $1.00 Dellvery person Dellvery vehicie Equipment depreciation Rent $ 700 $ 450 $2,010 S 800 Mlacellaneous $0.20 November, the pizzeria budgeted for 1,770 pizzas at an average liveries.

ell as offering take-out and free home delivery services. The pizze o major oost driversthe number of pizzas sold and the number e pizzeria's cost formulas appear below. FIxed Cost per Month Coat per Pizza Cootp Pizza Ingredlente Kitchen staff $ 4.00 $6,050 utittes S 80 $1.00 Dellvery person Dellvery vehicie Equipment depreciation Rent $ 700 $ 450 $2,010 S 800 Mlacellaneous $0.20 November, the pizzeria budgeted for 1,770 pizzas at an average liveries.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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