Question

Required: chartera lete the flexible budget performance report that shows both revenue and spending variances and OLIY y 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 (i.e., zero variance). Input all amounts as positive values.) Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Revenue and Spending Flexible Variances Budget $ 640 Actual Results $ 31,520 Activity Variances Planning Budget Revenue Expenses: Pizza ingredients 8,830 724 60 Kitchen staff L Utilities 6,030 930 630 1,004 Delivery person Delivery vehicle Equipment depreciation Rent 2,0507 Miscellaneous Total expense Net operating income 472 2,050 844 20,790 10,730 0 0 0 0 $ $ $

Answer 1

		Flexible Budget Performance Report
		Actual results	Revenue & spending		Flexible	Activity variance		Planning
			Variaance		budget			Budget
Pizzas		1,930			1,930			1,830
Deliveries		210			210			230
Revenue		31,520	640	F	30880	1600	F	29280
Expenses:
pizza ingredients		8,830	724	U	8106	420	U	7686
Kitchen staff		6,030	60	F	6,090	0	N	6,090
Utilities		930	156	F	1086	20	U	1066
Delivery person		630	0	N	630	60	F	690
delivery vehicle		1,004	32	U	972	24	F	996
Equipment depreciation		472	0	N	472	0	N	472
Rent		2,050	0	N	2,050	0	N	2,050
Miscellaneous		844	169	F	1013	10	U	1003
total expense		20,790	371	U	20419	366	U	20053
net operating income		10,730	269	F	10461	1234	F	9227

working notes

Planning budget
				1,830	230
				cost	Cost per	amount
			fixed cost	per pizza	Delvery
pizza ingredients				4.2		7686
Kitchen staff			6,090			6,090
Utilities			700	0.2		1066
Delivery person					3	690
delivery vehicle			720		1.2	996
Equipment depreciation			472			472
Rent			2,050			2,050
Miscellaneous			820	0.1		1003
						20053
Flexible budget
				1,930	210
				cost	Cost per	amount
			fixed cost	per pizza	Delvery
pizza ingredients				4.2		8106
Kitchen staff			6,090			6,090
Utilities			700	0.2		1086
Delivery person					3	630
delivery vehicle			720		1.2	972
Equipment depreciation			472			472
Rent			2,050			2,050
Miscellaneous			820	0.1		1013
						20419