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 Cost per Cost per per Month Pizza ingredients Pizza $ 3.80 Delivery Kitchen staff $ 5,220 Utilities $ 630 $ 0.05 Delivery person $ 3.50 Delivery vehicle $ 540 $ 1.50 Equipment depreciation $ 275 Rent $ 1,830 Miscellaneous $ 820 $ 0.15 In November, the pizzeria budgeted for 1,200 pizzas at an average selling price of $13.50 per pizza and for 180 deliveries. Data concerning the pizzeria's actual results in November were as follows: Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Actual Results 1,240 174 Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Required: $ 17,420 $ 4,985 $ 5,281 $ 984 $ 609 $ 655 $ 275 $ 1,830 $ 954 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 Flexible Budget Performance Report For the Month Ended November 30
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 Cost per Cost per per Month Pizza ingredients Pizza $ 3.80 Delivery Kitchen staff $ 5,220 Utilities $ 630 $ 0.05 Delivery person $ 3.50 Delivery vehicle $ 540 $ 1.50 Equipment depreciation $ 275 Rent $ 1,830 Miscellaneous $ 820 $ 0.15 In November, the pizzeria budgeted for 1,200 pizzas at an average selling price of $13.50 per pizza and for 180 deliveries. Data concerning the pizzeria's actual results in November were as follows: Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Actual Results 1,240 174 Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Required: $ 17,420 $ 4,985 $ 5,281 $ 984 $ 609 $ 655 $ 275 $ 1,830 $ 954 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 Flexible Budget Performance Report For the Month Ended November 30
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
$ 3.80
Cost per
Delivery
Kitchen staff
$ 5,220
Utilities
$ 630
$ 0.05
Delivery person
$ 540
$ 3.50
$ 1.50
Equipment depreciation
$ 275
$ 1,830
$ 820
$ 0.15
Delivery vehicle
Rent
Miscellaneous
In November, the pizzeria budgeted for 1,200 pizzas at an average selling price of $13.50 per pizza and for 180 deliveries.
Data concerning the pizzeria's actual results in November were as follows:
Actual
Results
Pizzas
Deliveries
Revenue
Kitchen staff
1,240
174
$ 17,420
Pizza ingredients
$ 4,985
$ 5,281
$ 984
$ 609
$ 655
$ 275
Utilities
Delivery person
Delivery vehicle
Equipment depreciation
Rent
Miscellaneous
Required:
$ 1,830
$ 954
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.)
Pizzas
Deliveries
Actual
Results
1,240
174
$
17,420
Revenue
Expenses:
Pizza ingredients
4,985
Kitchen staff
5,281
Utilities
984
Delivery person
609
Delivery vehicle
655
Equipment depreciation
275
Rent
1,830
Miscellaneous
954
Total expense
15,573
Net operating income
$
1,847
Milano Pizza
Flexible Budget Performance Report
For the Month Ended November 30
Flexible
Planning
Budget
Budget
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