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.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 1CE: Ventana Window and Wall Treatments Company provides draperies, shades, and various window...

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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: Fixed Costper Month Cost perPizza Cost perDelivery Pizza ingredients $ 4.60 Kitchen staff $ 6,170 Utilities $ 740 $ 0.60 Delivery person $ 3.40 Delivery vehicle $ 760 $ 1.60 Equipment depreciation $ 504 Rent $ 2,130 Miscellaneous $ 860 $ 0.20 In November, the pizzeria budgeted for 1,950 pizzas at an average selling price of $20 per pizza and for 190 deliveries. Data concerning the pizzeria’s actual results in November appear below: Actual Results Pizzas 2,050 Deliveries 170 Revenue $ 41,680 Pizza…
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: Fixed Costper Month Cost perPizza Cost perDelivery Pizza ingredients $ 4.40 Kitchen staff $ 5,910 Utilities $ 610 $ 0.30 Delivery person $ 3.10 Delivery vehicle $ 630 $ 1.50 Equipment depreciation $ 400 Rent $ 1,870 Miscellaneous $ 730 $ 0.15 In November, the pizzeria budgeted for 1,560 pizzas at an average selling price of $15 per pizza and for 220 deliveries. Data concerning the pizzeria’s actual results in November appear below: Actual Results Pizzas 1,660 Deliveries 200 Revenue $ 25,450 Pizza…
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