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 Der Cost ner
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 Der Cost ner
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Do not give image format
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:
Pizza ingredients
Kitchen staff
Utilities
Delivery person
Delivery vehicle
Equipment depreciation
Rent
Miscellaneous
Fixed Cost
per Month
Pizzas
Deliveries
Revenue
Pizza ingredients
Kitchen staff
Utilities
Delivery person
Delivery vehicle
Equipment depreciation
Rent
Miscellaneous
$6,030
$ 670
Actual
Results
1,840
180
Cost per
Pizza
$5.00
$0.90
$ 690
$448
$ 1,990
$790
In November, the pizzeria budgeted for 1,740 pizzas at an average selling price of $13 per pizza and for 200 deliveries.
Data concerning the pizzeria's actual results in November were as follows:
$ 24,530
$ 8,290
$5,970
$915
$486
$998
$448
$ 1,990
$ 826
Cost per
Delivery
$ 0.15
$2.70
$ 2.10
Transcribed Image Text: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
variance). Input all amounts as positive values.
Pizzas
Deliveries
Revenue
Expenses:
Pizza ingredients
Kitchen staff
Utilities
Delivery person
Delivery vehicle
Equipment depreciation
Rent
Miscellaneous
Total expenses
Net operating income
Actual
Results
1,840
180
$ 24,530
$
8,290
5,970
915
486
998
448
1,990
826
19,923
4,607
Milano Pizza
Flexible Budget Performance Report
For the Month Ended November 30
Flexible
Budget
$
0
0
Planning
Budget
$
0
0
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education