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 plzzerla's owner has determined that the shop has two major cost drivers—the number of pizzas sold and the number of deliveries made. points The pizzerla's cost formulas appear below: Fixed Cost per Month Cost per Pizza $ 4.60 cost per Delivery eBook $5.950 $ 630 $ 0.5e $3.30 Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $1.70 Print $ 650 $ 416 $1.910 $ 750 $ 0.25 In November, the pizzeria budgeted for 1.620 pizzas at an average selling price of $17 per pizza and for 240 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Results 1,720 220 Pizzas Deliveries $ 29,810 7.570 $ 5,898 995 Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous 726 990 $ $ 1,910 902 Required: 1. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November. (Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values.) Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Flexible Budget Actual Results Planning Budget Pizzas Deliveries 1.720 220 $ 29.8101 7.5701 5.890 Revenue Expenses: Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent 990 416 1.9101 8021 19.1991 10,611 Miscellaneous Total expense Net operating income $

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
Pizzas	1720			1720			1620
Deliveries	220			220			240
Revenue	29810	570	F	29240	1700	F	27540
Expenses:
Pizza ingredients	7570	342	F	7912	460	U	7452
Kitchen staff	5890	60	F	5950	0	None	5950
Utilities	895	595	F	1490	50	U	1440
Delivery person	726	0	None	726	66	F	792
Delivery vehicle	990	34	F	1024	34	F	1058
Equipment depreciation	416	0	None	416	0	None	416
Rent	1910	0	None	1910	0	None	1910
Miscellaneous	802	378	F	1180	25	U	1155
Total expense	19199	1409	F	20608	435	U	20173
Net operating income	10611	1979	F	8632	1265	F	7367