In November, the pizzeria budgeted for 1,590 pizzas at an average selling price of $16 per pizza and for 230 deliveries. Data concerning the pizzeria's actual results in November appear below. Actual Results 1,690 210 Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities. Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Required: $ 27,600 $ 7,390 $ 5,870 $ 890 $ 672 $ 988 $ 408 $ 1,890 $ 796 1. Compute the revenue and spending variances for the pizzeria for November (Indicate the effect of each variance by selecting "F" blo !!!!! for u
In November, the pizzeria budgeted for 1,590 pizzas at an average selling price of $16 per pizza and for 230 deliveries. Data concerning the pizzeria's actual results in November appear below. Actual Results 1,690 210 Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities. Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Required: $ 27,600 $ 7,390 $ 5,870 $ 890 $ 672 $ 988 $ 408 $ 1,890 $ 796 1. Compute the revenue and spending variances for the pizzeria for November (Indicate the effect of each variance by selecting "F" blo !!!!! for u
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 drivers the number of pizzas sold and the
number of deliveries made.
The pizzeria's cost formulas appear below:
Pizza ingredients
Fixed Cost
Cost per
per Month
Pizza
$ 4.50
$ 5,930
Cost per
Delivery
Kitchen staff
Utilities
Delivery person
Delivery vehicle
Equipment depreciation
Rent
Miscellaneous
$ 620
$640
$ 408
$1,890
$740
$0.40
$ 3.20
$ 0.20
$ 1.60
In November, the pizzeria budgeted for 1,590 pizzas at an average selling price of $16 per pizza and for 230 deliveries.
Data concerning the pizzeria's actual results in November appear below.
Actual
Results
Pizzas
Deliveries
Revenue
1,690
210
Kitchen staff
Delivery person
$27,600
Pizza ingredients
$ 7,390
$ 5,870
Utilities.
$ 890
$ 672
$ 988
$ 408
$ 1,890
$ 796
Delivery vehicle
Equipment depreciation
Rent
Miscellaneous
Required:
13
1. Compute the revenue and spending 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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