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 Fixed Cost per Month Cost per Pizza $ 4.30 Cost per Delivery $ 5,890 $ 600 $ 0.20 $ 620 $ 3.00 $ 1.40 Delivery vehicle Equipment depreciation Rent Miscellaneous $ 392 $ 1,850 $ 720 $ 0.10 In November, the pizzeria budgeted for 1,530 pizzas at an average selling price of $14 per pizza and for 210 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results Pizzas Deliveries Revenue Kitchen staff 1,630 190 $ 23,360 Pizza ingredients $ 7,030 $ 5,830 Utilities Delivery person $ 880 $ 570 Delivery vehicle Equipment depreciation Rent Miscellaneous Required: $ 984 $ 392 $ 1,850 $ 784 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 Flavihla Rudnat Derformance Dann
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 Fixed Cost per Month Cost per Pizza $ 4.30 Cost per Delivery $ 5,890 $ 600 $ 0.20 $ 620 $ 3.00 $ 1.40 Delivery vehicle Equipment depreciation Rent Miscellaneous $ 392 $ 1,850 $ 720 $ 0.10 In November, the pizzeria budgeted for 1,530 pizzas at an average selling price of $14 per pizza and for 210 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results Pizzas Deliveries Revenue Kitchen staff 1,630 190 $ 23,360 Pizza ingredients $ 7,030 $ 5,830 Utilities Delivery person $ 880 $ 570 Delivery vehicle Equipment depreciation Rent Miscellaneous Required: $ 984 $ 392 $ 1,850 $ 784 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 Flavihla Rudnat Derformance Dann
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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am. 123.
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:
Pizza ingredients
Kitchen staff
Utilities
Delivery person
Fixed Cost
per Month
Cost per
Pizza
$ 4.30
Cost per
Delivery
$ 5,890
$ 600
$ 0.20
$
620
$ 3.00
$ 1.40
Delivery vehicle
Equipment depreciation
Rent
Miscellaneous
$ 392
$ 1,850
$ 720
$ 0.10
In November, the pizzeria budgeted for 1,530 pizzas at an average selling price of $14 per pizza and for 210 deliveries.
Data concerning the pizzeria's actual results in November were as follows:
Actual
Results
Pizzas
Deliveries
Revenue
Kitchen staff
1,630
190
$ 23,360
Pizza ingredients
$ 7,030
$ 5,830
Utilities
Delivery person
$ 880
$ 570
Delivery vehicle
Equipment depreciation
Rent
Miscellaneous
Required:
$
984
$ 392
$ 1,850
$ 784
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
Flavihla Rudnat Derformance Dann
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