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 Fixed Cost per Month Cost per Pizza $ 4.90 Cost per Delivery $ 6,010 $ 660 $ 0.80 $ 2.60 $ 680 $ 440 $ 2.00 Equipment depreciation Rent $ 1,970 Miscellaneous $ 780 $ 0.10 In November, the pizzeria budgeted for 1,710 pizzas at an average selling price of $20 per pizza and for 190 deliveries. Data concerning the pizzeria's actual results In November were as follows: Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Actual Results 1,810 170 $ 36,800 $ 8,110 $ 5,950 Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Required: $ 910 $ 442 $ 996 $ 440 $ 1,970 $ 820 1. Complete the flexible budget performance report for November. Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values.
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 Fixed Cost per Month Cost per Pizza $ 4.90 Cost per Delivery $ 6,010 $ 660 $ 0.80 $ 2.60 $ 680 $ 440 $ 2.00 Equipment depreciation Rent $ 1,970 Miscellaneous $ 780 $ 0.10 In November, the pizzeria budgeted for 1,710 pizzas at an average selling price of $20 per pizza and for 190 deliveries. Data concerning the pizzeria's actual results In November were as follows: Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Actual Results 1,810 170 $ 36,800 $ 8,110 $ 5,950 Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Required: $ 910 $ 442 $ 996 $ 440 $ 1,970 $ 820 1. Complete the flexible budget performance report for November. Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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