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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 Cost per Month Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 6,170 $ 740 Required: $760 $ 504 $ 2,130 $ 860 Miscellaneous n 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 were as follows: Actual Results 2,050 170 Cost per Pizza $ 4.60 $ 41,680 $ 9,550 $ 6,110 $ 950 $578 $ 1,012 $ 504 $ 2,130 $868 $ 0.60 Cost per Delivery $0.20 $ 3.40 $ 1.60

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 Month Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 6,170 $ 740 Required: $760 $ 504 $ 2,130 $ 860 Miscellaneous n 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 were as follows: Actual Results 2,050 170 Cost per Pizza $ 4.60 $ 41,680 $ 9,550 $ 6,110 $ 950 $578 $ 1,012 $ 504 $ 2,130 $868 $ 0.60 Cost per Delivery $0.20 $ 3.40 $ 1.60

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 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 Month Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent $ 6,170 $ 740 Miscellaneous $ 760 $ 504 $ 2,130 $ 860 Actual Results 2,050 170 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 were as follows: $ 41,680 $ 9,550 $ 6,110 $ $ 950 $ 578 1,012 $ 504 Cost per Pizza $ 4.60 $ 2,130 $868 $ 0.60 $ 0.20 Cost per Delivery $ 3.40 $ 1.60 Required: 1. Complete the flexible budget performance report that shows both revenue and spending variances and activity 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.)
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 Month Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent $ 6,170 $ 740 Miscellaneous $ 760 $ 504 $ 2,130 $ 860 Actual Results 2,050 170 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 were as follows: $ 41,680 $ 9,550 $ 6,110 $ $ 950 $ 578 1,012 $ 504 Cost per Pizza $ 4.60 $ 2,130 $868 $ 0.60 $ 0.20 Cost per Delivery $ 3.40 $ 1.60 Required: 1. Complete the flexible budget performance report that shows both revenue and spending variances and activity 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.)
Required: 1. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances f pizzeria for November. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None' effect (i.e., zero 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 expense Net operating income $ $ Actual Results Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Revenue and Spending Variances 2,050 170 41,680 9,550 6,110 950 578 1,012 504 2,130 868 21,702 19,978 F IF F F None F None None F F F Flexible Budget $ 2,050 170 0 0 Activity Variances F U None U F F None None U U Planning Budget $ 0 0
Transcribed Image Text:Required: 1. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances f pizzeria for November. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None' effect (i.e., zero 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 expense Net operating income $ $ Actual Results Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Revenue and Spending Variances 2,050 170 41,680 9,550 6,110 950 578 1,012 504 2,130 868 21,702 19,978 F IF F F None F None None F F F Flexible Budget $ 2,050 170 0 0 Activity Variances F U None U F F None None U U Planning Budget $ 0 0
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