Question

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 pezas sold and the number of deliveries made. The pizzeria's cost formulas appear below Fixed Cost per Month Cost pe Di Pizza ingredients Kitchen statt Utilities Delivery person Delivery vehicle Equipment depreciation Miscellaneous 2005 .10 In November the pizzeria budgeted for 2.070 pizzas at an average selling price of 516 per pizza and for 230 deliveries Data concerning the pizzeria's actual results in November car below Actual Results 2,170 210 Pizzas Deliveries $ 35,00 10.27 6.190 970 $ Revenue Plita ingredients Kitchen Staff Utilities Delivery person Delivery vehicle Equipeent depreciatio Miscellaneous Required: s pens no variances and activity vraces for the for favorable. "U" for unfavorable and "None" for no 1 Comoethenebebusot performance report that shows bomveru Dies for November indicate the effect of each variance by selecting effect letero voloncel Input all amounts os positive values:) Milano Pizza

Answer 1

Milano Pizza
Flexible Budget Performance Report
For the Month Ended November 30
	Actual Results	Revenue and spending variances		Flexible Budget	Working	Actvity Variance		Planning Budget	Working
Pizzas	2170			2170				2070
Deliveries	210			210				230
Revenue	$35,440	$720	F	$34,720	(2170*$16)	$1,600	F	33120	(2070*16)
Expenses:
Pizza ingredients	$10,270	-$580	UF	$10,850	(5X2170)	$500	UF	$10,350	(5X2070)
Kitchen staff	$6,190	$60	F	$6,250			None	$6,250
Utilities	$970	$1,980	F	$2,950	(780+ 1X2170)	$100	UF	$2,850	(780+ 1X2070)
Delivery person	$588	$0	None	$588	(2.80*210)	$56	F	$644	(2.80*230)
Delivery vehicle	$1,020	$200	F	$1,220	(800+2.00*210)	$40	F	$1,260	(800+2.00*230)
Equipment depreciation	$536	$0	None	$536			None	$536
Rent	$2,210	$0	None	$2,210			None	$2,210
Miscellaneous	$892	$225	F	$1,117	(900+0.10*2170)	$10	UF	$1,107	(900+0.10*2070)
Total expense	$22,676	$3,045	F	$25,721		$514	UF	$25,207
Net operating income	$12,764	$3,765	F	$8,999		$1,086	F	$7,913