Question

Problem 9-20 More Than One Cost Driver [LO9-4, LO9-5] Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering ery 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. Data concerning the pizzeria's costs appear below: Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Fixed Cost Cost per Cost per per Month Pizza Delivery $ 4.90 $ 6,230 $ 770 $0.90 $ 2.70 $ 790 $ 1.90 $ 528 $ 2,190 $ 890 $ 0.20

Answer 1

	Milano Pizza
	Flexible Budget Performance Report
	For the Month Ended November 30
	Actual Results	Revenue and spending variances		Flexible Budget	Activity variances		Planning Budget
Revenue	32810	710	F	32100	1500	F	30600
Expenses:
Pizza ingredients	10090	396	F	10486	490	U	9996
Kitchen staff	6170	60	F	6230	0	None	6230
Utilities	965	1731	F	2696	90	U	2606
Delivery person	540	0	None	540	54	F	594
Delivery vehicle	1018	152	F	1170	38	F	1208
Equipment depreciation	528	0	None	528	0	None	528
Rent	2190	0	None	2190	0	None	2190
Miscellaneous	886	432	F	1318	20	U	1298
Total expense	22387	2771	F	25158	508	U	24650
Net operating income	10423	3481	F	6942	992	F	5950