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 $ 6,330 $ 820 Miscellaneous $ 840 $ 568 $ 2,290 $ 940 Actual Results 2,290 170 In November, the pizzeria budgeted for 2,190 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: $ 46,560 $ 10,990 $ 6,270 $ 990 $ 544 Cost per Pizza $ 4.30 $ 1,028 $ 568 $ 2,290 $ 916 $ 0.40 $ 0.20 Cost per Delivery $ 3.20 $ 1.30 Required: 1. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November. Note: 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: 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 $ 6,330 $ 820 Miscellaneous $ 840 $ 568 $ 2,290 $ 940 Actual Results 2,290 170 In November, the pizzeria budgeted for 2,190 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: $ 46,560 $ 10,990 $ 6,270 $ 990 $ 544 Cost per Pizza $ 4.30 $ 1,028 $ 568 $ 2,290 $ 916 $ 0.40 $ 0.20 Cost per Delivery $ 3.20 $ 1.30 Required: 1. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November. Note: 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: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
2,290
170
46,560
10,990
6,270
990
544
1,028
568
2,290
916
23,596
22,964
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:
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
Fixed Cost
per Month
Miscellaneous
$ 6,330
$ 820
$ 840
$ 568
$ 2,290
$ 940
Actual
Results
2,290
170
In November, the pizzeria budgeted for 2,190 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:
$ 46,560
$ 10,990
$ 6,270
$ 990
$ 544
$ 1,028
$ 568
Cost per
Pizza
$ 4.30
$ 2,290
$ 916
$ 0.40
$ 0.20
Cost per
Delivery
$ 3.20
$ 1.30
Required:
1. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the
pizzeria for November.
Note: 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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