Required: 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.) Pizzas Deliveries Revenue Milano Pizza Revenue and Spending Variances For the Month Ended November 30 Actual Results Revenue and Spending Variances Flexible Budget 1,690 210 $ 27,600 Expenses: Pizza ingredients Kitchen staff 7,390 5,870 Utilities 890 Delivery person 672 Delivery vehicle 988 Equipment depreciation 408 Rent Miscellaneous 1,890 796 Total expense 18,904 Net operating income $ 8,696 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 Cost per Cost per Month Pizza $ 4.50 Cost per Delivery Pizza ingredients Kitchen staff $ 5,930 Utilities $ 620 $ 0.40 Delivery person Delivery vehicle $ 640 $ 3.20 $ 1.60 Equipment depreciation. $ 408 $ 1,890 $ 740 $ 0.20 Rent Miscellaneous 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 Pizzas Deliveries Revenue 210 $ 27,600 Pizza ingredients $ 7,390 Kitchen staff $ 5,870 Utilities Delivery person $ 890 $ 672 Delivery vehicle Equipment depreciation. Rent Miscellaneous $ 988 $ 408 $ 1,890 $ 796
Required: 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.) Pizzas Deliveries Revenue Milano Pizza Revenue and Spending Variances For the Month Ended November 30 Actual Results Revenue and Spending Variances Flexible Budget 1,690 210 $ 27,600 Expenses: Pizza ingredients Kitchen staff 7,390 5,870 Utilities 890 Delivery person 672 Delivery vehicle 988 Equipment depreciation 408 Rent Miscellaneous 1,890 796 Total expense 18,904 Net operating income $ 8,696 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 Cost per Cost per Month Pizza $ 4.50 Cost per Delivery Pizza ingredients Kitchen staff $ 5,930 Utilities $ 620 $ 0.40 Delivery person Delivery vehicle $ 640 $ 3.20 $ 1.60 Equipment depreciation. $ 408 $ 1,890 $ 740 $ 0.20 Rent Miscellaneous 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 Pizzas Deliveries Revenue 210 $ 27,600 Pizza ingredients $ 7,390 Kitchen staff $ 5,870 Utilities Delivery person $ 890 $ 672 Delivery vehicle Equipment depreciation. Rent Miscellaneous $ 988 $ 408 $ 1,890 $ 796
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Required:
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.)
Pizzas
Deliveries
Revenue
Milano Pizza
Revenue and Spending Variances
For the Month Ended November 30
Actual
Results
Revenue and Spending
Variances
Flexible
Budget
1,690
210
$
27,600
Expenses:
Pizza ingredients
Kitchen staff
7,390
5,870
Utilities
890
Delivery person
672
Delivery vehicle
988
Equipment depreciation
408
Rent
Miscellaneous
1,890
796
Total expense
18,904
Net operating income
$
8,696
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:
Fixed
Cost per Cost per
Month
Pizza
$ 4.50
Cost per
Delivery
Pizza ingredients
Kitchen staff
$ 5,930
Utilities
$ 620
$ 0.40
Delivery person
Delivery vehicle
$ 640
$ 3.20
$ 1.60
Equipment depreciation.
$ 408
$ 1,890
$ 740
$ 0.20
Rent
Miscellaneous
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
Pizzas
Deliveries
Revenue
210
$ 27,600
Pizza ingredients
$ 7,390
Kitchen staff
$ 5,870
Utilities
Delivery person
$ 890
$ 672
Delivery vehicle
Equipment depreciation.
Rent
Miscellaneous
$ 988
$ 408
$ 1,890
$ 796
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