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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: Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Fixed Cost per Month Utilities Delivery person Delivery vehicle. Equipment depreciation Rent Miscellaneous $ 6,250 $ 780 $ 800 $ 536 $ 2,210 $ 900 $ 0.10 In November, the pizzeria budgeted for 2,070 pizzas at an average selling price of $16 per pizza and for 230 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results 2,170 210 $ 35,440 $ 10,270 $ 6,190 $ 970 $ 588 $1,020 $536 Cost per Pizza $ 5.00 $ 1.00 $2,210 $892 Cost per Delivery $ 2.80 $ 2.00 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 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: Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Fixed Cost per Month Utilities Delivery person Delivery vehicle. Equipment depreciation Rent Miscellaneous $ 6,250 $ 780 $ 800 $ 536 $ 2,210 $ 900 $ 0.10 In November, the pizzeria budgeted for 2,070 pizzas at an average selling price of $16 per pizza and for 230 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results 2,170 210 $ 35,440 $ 10,270 $ 6,190 $ 970 $ 588 $1,020 $536 Cost per Pizza $ 5.00 $ 1.00 $2,210 $892 Cost per Delivery $ 2.80 $ 2.00 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.)

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 4 Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle. Equipment depreciation Rent Miscellaneous Pizzas Deliveries Revenue Expenses: Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent $ 6,250 $ 780 $ 0.10 In November, the pizzeria budgeted for 2,070 pizzas at an average selling price of $16 per pizza and for 230 deliveries. Data concerning the pizzeria's actual results in November were as follows: Miscellaneous Total expense Net operating income $ 800 $ 536 $ 2,210 $.900 Actual Results 2,170 210 $ 35,440 $ 10,270 $ 6,190 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.) $ $ 970 $ 588 $1,020 $536 $2,210 $892 Actual Results Cost per Pizza $5.00 $ $ 1.00 2,170 210 35,440 Cost per Delivery 10,270 6,190 970 588 1,020 536 2,210 892 $ 2.80 $ 2.00 Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 22,676 12,764 Flexible Budget Planning Budget
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 4 Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle. Equipment depreciation Rent Miscellaneous Pizzas Deliveries Revenue Expenses: Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent $ 6,250 $ 780 $ 0.10 In November, the pizzeria budgeted for 2,070 pizzas at an average selling price of $16 per pizza and for 230 deliveries. Data concerning the pizzeria's actual results in November were as follows: Miscellaneous Total expense Net operating income $ 800 $ 536 $ 2,210 $.900 Actual Results 2,170 210 $ 35,440 $ 10,270 $ 6,190 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.) $ $ 970 $ 588 $1,020 $536 $2,210 $892 Actual Results Cost per Pizza $5.00 $ $ 1.00 2,170 210 35,440 Cost per Delivery 10,270 6,190 970 588 1,020 536 2,210 892 $ 2.80 $ 2.00 Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 22,676 12,764 Flexible Budget Planning Budget
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