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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 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.

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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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: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
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.
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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