Question

Milano Puma s mall heighborhood pizzeria that has a small area forintor dining as well as offering take out and free home Bovery Services. The plazeria's owner has determined that the shop has two major cost over-the number of per sold and the er delvenes made H The pizzera's cost formulas appear below. P per Month D e $ 4.20 redients Kitchen statt Utilities Delivery person Delivery vehicle Equipe depreciation Rent in November, the plazera budgeted for 2160 pizzas at an average selling price of $9 perpless and for 180 dollveres Data concerning the pizzeria's actual results in November appear below. Act Pizzas Deliveries Plaza ingredients Kitchen statt Utilities Delivery person Delivery vehicle Equipment depreciation Miscellaneous $ 2,278 Required: 1 Complete the flexible budget performance report that shows both revenue and spending variances and acevtyvartances for the pizzeria for November (Indicate the effect of each variance by selecting "F" for favorable. "Ufor unfavorable, and "None forno effect (le, zero variance). Input all amounts as positive values.) Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Budget 280 100 $ 13.000 T L Revenue Expenses Paza ingredients Kitchen staff Us Delivery person Delivery wide Equipment Depreciation Rent T 10.810 6.250 08 400 1.000 B of 12.270 R010 23 T Totalep

Answer 1

Solution:

Milano Pizza
Flexible Budget Performance Report
For the month ended November 30
Particulars	Actual results	Revenue and spending variances		Flexible Budget	Activity Variances		Planning Budget
Nos of Pizza	2260			2260			2160
Nos of deliveries	160			160			180
Revenue	$43,690.00	$750.00	F	$42,940.00	$1,900.00	F	$41,040.00
Expenses:
Pizza Ingredients	$10,810.00	$1,318.00	U	$9,492.00	$420.00	U	$9,072.00
Kitchen Staff	$6,250.00	$60.00	F	$6,310.00	$0.00	None	$6,310.00
Utilities	$985.00	$503.00	F	$1,488.00	$30.00	U	$1,458.00
Delivery Person	$496.00	$0.00	None	$496.00	$62.00	F	$558.00
Delivery Vehicle	$1,026.00	$4.00	U	$1,022.00	$24.00	F	$1,046.00
Equipment Depreciation	$560.00	$0.00	None	$560.00	$0.00	None	$560.00
Rent	$2,270.00	$0.00	None	$2,270.00	$0.00	None	$2,270.00
Miscellenous	$910.00	$359.00	F	$1,269.00	$15.00	U	$1,254.00
Total Expenses	$23,307.00	$400.00	U	$22,907.00	$379.00	U	$22,528.00
Net Income	$20,383.00	$350.00	F	$20,033.00	$1,521.00	F	$18,512.00