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.) Milano Pizza Pizzas Deliveries Actual Results 2,200 220 $ 38,130 Flexible Budget Performance Report For the Month Ended November 30 Flexible Budget Planning Budget Revenue Expenses: Pizza ingredients 10,450 Kitchen staff 6,210 Utilities 975 Delivery person 638 Delivery vehicle 1,022 Equipment depreciation 544 Rent 2,230 Miscellaneous 898 Total expense 22,967 0 0 Net operating income $ 15,163 $ 0 $ 0 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 Cost per Pizza $ 4.00 Cost per Delivery Kitchen staff $ 6,270 Utilities Delivery person Delivery vehicle $ 790 $ 0.10 $ 810 $ 2.90 $ 2.10 Equipment depreciation Rent $ 544 $ 2,230 Miscellaneous $ 910 $ 0.05 In November, the pizzeria budgeted for 2,100 pizzas at an average selling price of $17 per pizza and for 240 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results 2,200 220 $ 38,130 Pizzas Deliveries Revenue Kitchen staff Pizza ingredients $ 10,450 $ 6,210 Utilities Delivery person $ 975 $ 638 $ 1,022 $ 544 $ 2,230 $ 898 Delivery vehicle Equipment depreciation Rent Miscellaneous 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 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.) Milano Pizza Pizzas Deliveries Actual Results 2,200 220 $ 38,130 Flexible Budget Performance Report For the Month Ended November 30 Flexible Budget Planning Budget Revenue Expenses: Pizza ingredients 10,450 Kitchen staff 6,210 Utilities 975 Delivery person 638 Delivery vehicle 1,022 Equipment depreciation 544 Rent 2,230 Miscellaneous 898 Total expense 22,967 0 0 Net operating income $ 15,163 $ 0 $ 0 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 Cost per Pizza $ 4.00 Cost per Delivery Kitchen staff $ 6,270 Utilities Delivery person Delivery vehicle $ 790 $ 0.10 $ 810 $ 2.90 $ 2.10 Equipment depreciation Rent $ 544 $ 2,230 Miscellaneous $ 910 $ 0.05 In November, the pizzeria budgeted for 2,100 pizzas at an average selling price of $17 per pizza and for 240 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results 2,200 220 $ 38,130 Pizzas Deliveries Revenue Kitchen staff Pizza ingredients $ 10,450 $ 6,210 Utilities Delivery person $ 975 $ 638 $ 1,022 $ 544 $ 2,230 $ 898 Delivery vehicle Equipment depreciation Rent Miscellaneous 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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.)
Milano Pizza
Pizzas
Deliveries
Actual
Results
2,200
220
$
38,130
Flexible Budget Performance Report
For the Month Ended November 30
Flexible
Budget
Planning
Budget
Revenue
Expenses:
Pizza ingredients
10,450
Kitchen staff
6,210
Utilities
975
Delivery person
638
Delivery vehicle
1,022
Equipment depreciation
544
Rent
2,230
Miscellaneous
898
Total expense
22,967
0
0
Net operating income
$
15,163
$
0
$
0
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
Cost per
Pizza
$ 4.00
Cost per
Delivery
Kitchen staff
$ 6,270
Utilities
Delivery person
Delivery vehicle
$ 790
$ 0.10
$ 810
$ 2.90
$ 2.10
Equipment depreciation
Rent
$ 544
$ 2,230
Miscellaneous
$ 910
$ 0.05
In November, the pizzeria budgeted for 2,100 pizzas at an average selling price of $17 per pizza and for 240 deliveries.
Data concerning the pizzeria's actual results in November were as follows:
Actual
Results
2,200
220
$ 38,130
Pizzas
Deliveries
Revenue
Kitchen staff
Pizza ingredients
$ 10,450
$ 6,210
Utilities
Delivery person
$ 975
$ 638
$ 1,022
$ 544
$ 2,230
$ 898
Delivery vehicle
Equipment depreciation
Rent
Miscellaneous
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.)
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