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Milano Pizza has a small area for in-store dining as well as offers take-out and free home delivery services. The pizzeria's owner determined 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: Fixed Cost Cost per per Month Pizza Cost per Delivery Pizza ingredients $ 4.40 Kitchen staff $ 6,350 Utilities Delivery person $ 830 $ 0.50 Delivery vehicle 5 Equipment depreciation Rent $ 850 $ 576 $ 2,310 $ 3.30 $ 1.40 Miscellaneous $ 950 $ 0.25 In November, the pizzeria budgeted for 2,220 pizzas at an average selling price of $21 per pizza and for 200 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results 2,320 Pizzas Deliveries Revenue Kitchen staff 180 $ 49,490 Pizza ingredients $ 11,170 $ 6,290 Utilities Delivery person $ 995 $ 594 $ 1,030 $ 576 $ 2,310 $ 922 Delivery vehicle Equipment depreciation Rent Miscellaneous Required: 1. Complete the flexible budget performance report for November. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero 1. Complete the flexible budget performance report for November. Note: 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. Pizzas Deliveries Revenue Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Actual Activity Variances Results 2,320 180 $ 49,490 Flexible Budget Revenue and Spending Variances Planning Budget Expenses: Pizza ingredients 11,170 Kitchen staff 6,290 Utilities 995 Delivery person 594 Delivery vehicle 1,030 Equipment depreciation 576 Rent 2,310 Miscellaneous 922 Total expenses 23,887 0 0 Net operating income $ 25,603 $ 0 $ 0

Milano Pizza has a small area for in-store dining as well as offers take-out and free home delivery services. The pizzeria's owner determined 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: Fixed Cost Cost per per Month Pizza Cost per Delivery Pizza ingredients $ 4.40 Kitchen staff $ 6,350 Utilities Delivery person $ 830 $ 0.50 Delivery vehicle 5 Equipment depreciation Rent $ 850 $ 576 $ 2,310 $ 3.30 $ 1.40 Miscellaneous $ 950 $ 0.25 In November, the pizzeria budgeted for 2,220 pizzas at an average selling price of $21 per pizza and for 200 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results 2,320 Pizzas Deliveries Revenue Kitchen staff 180 $ 49,490 Pizza ingredients $ 11,170 $ 6,290 Utilities Delivery person $ 995 $ 594 $ 1,030 $ 576 $ 2,310 $ 922 Delivery vehicle Equipment depreciation Rent Miscellaneous Required: 1. Complete the flexible budget performance report for November. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero 1. Complete the flexible budget performance report for November. Note: 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. Pizzas Deliveries Revenue Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Actual Activity Variances Results 2,320 180 $ 49,490 Flexible Budget Revenue and Spending Variances Planning Budget Expenses: Pizza ingredients 11,170 Kitchen staff 6,290 Utilities 995 Delivery person 594 Delivery vehicle 1,030 Equipment depreciation 576 Rent 2,310 Miscellaneous 922 Total expenses 23,887 0 0 Net operating income $ 25,603 $ 0 $ 0

FINANCIAL ACCOUNTING
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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Milano Pizza has a small area for in-store dining as well as offers take-out and free home delivery services. The pizzeria's owner determined 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: Fixed Cost Cost per per Month Pizza Cost per Delivery Pizza ingredients $ 4.40 Kitchen staff $ 6,350 Utilities Delivery person $ 830 $ 0.50 Delivery vehicle 5 Equipment depreciation Rent $ 850 $ 576 $ 2,310 $ 3.30 $ 1.40 Miscellaneous $ 950 $ 0.25 In November, the pizzeria budgeted for 2,220 pizzas at an average selling price of $21 per pizza and for 200 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results 2,320 Pizzas Deliveries Revenue Kitchen staff 180 $ 49,490 Pizza ingredients $ 11,170 $ 6,290 Utilities Delivery person $ 995 $ 594 $ 1,030 $ 576 $ 2,310 $ 922 Delivery vehicle Equipment depreciation Rent Miscellaneous Required: 1. Complete the flexible budget performance report for November. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero
Transcribed Image Text:Milano Pizza has a small area for in-store dining as well as offers take-out and free home delivery services. The pizzeria's owner determined 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: Fixed Cost Cost per per Month Pizza Cost per Delivery Pizza ingredients $ 4.40 Kitchen staff $ 6,350 Utilities Delivery person $ 830 $ 0.50 Delivery vehicle 5 Equipment depreciation Rent $ 850 $ 576 $ 2,310 $ 3.30 $ 1.40 Miscellaneous $ 950 $ 0.25 In November, the pizzeria budgeted for 2,220 pizzas at an average selling price of $21 per pizza and for 200 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results 2,320 Pizzas Deliveries Revenue Kitchen staff 180 $ 49,490 Pizza ingredients $ 11,170 $ 6,290 Utilities Delivery person $ 995 $ 594 $ 1,030 $ 576 $ 2,310 $ 922 Delivery vehicle Equipment depreciation Rent Miscellaneous Required: 1. Complete the flexible budget performance report for November. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero
1. Complete the flexible budget performance report for November. Note: 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. Pizzas Deliveries Revenue Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Actual Activity Variances Results 2,320 180 $ 49,490 Flexible Budget Revenue and Spending Variances Planning Budget Expenses: Pizza ingredients 11,170 Kitchen staff 6,290 Utilities 995 Delivery person 594 Delivery vehicle 1,030 Equipment depreciation 576 Rent 2,310 Miscellaneous 922 Total expenses 23,887 0 0 Net operating income $ 25,603 $ 0 $ 0
Transcribed Image Text:1. Complete the flexible budget performance report for November. Note: 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. Pizzas Deliveries Revenue Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Actual Activity Variances Results 2,320 180 $ 49,490 Flexible Budget Revenue and Spending Variances Planning Budget Expenses: Pizza ingredients 11,170 Kitchen staff 6,290 Utilities 995 Delivery person 594 Delivery vehicle 1,030 Equipment depreciation 576 Rent 2,310 Miscellaneous 922 Total expenses 23,887 0 0 Net operating income $ 25,603 $ 0 $ 0
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