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 Cost per Month Pizza Miscellaneous $ 5,910 $ 610 $ 630 $ 400 $ 1,870 $ 730 $ 0.15 In November, the pizzeria budgeted for 1,560 pizzas at an average selling price of $15 per pizza and for 220 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Results 1,660 200 $ 25,450 $ 7,210 $ 5,85d $ 885 $ 620 $ 986 $ 400 $ 4.40 $ 1,870 $ 790 $ 0.30 Cost per Delivery $ 3.10 $ 1.50 Required: 1. Compute the revenue and spending variances for the pizzeria for November. (Indicate the effect of each variance by selecting "F"
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 Cost per Month Pizza Miscellaneous $ 5,910 $ 610 $ 630 $ 400 $ 1,870 $ 730 $ 0.15 In November, the pizzeria budgeted for 1,560 pizzas at an average selling price of $15 per pizza and for 220 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Results 1,660 200 $ 25,450 $ 7,210 $ 5,85d $ 885 $ 620 $ 986 $ 400 $ 4.40 $ 1,870 $ 790 $ 0.30 Cost per Delivery $ 3.10 $ 1.50 Required: 1. Compute the revenue and spending variances for the pizzeria for November. (Indicate the effect of each variance by selecting "F"
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 8PB: Colin OShea has a carpentry shop that employs 4 carpenters. Colin received an order for 1,000 coffee...
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