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 pizzas sold and the number of deliveries
made. The pizzeria’s cost formulas appear below: Fixed Cost per
Month Cost per Pizza Cost per Delivery Pizza ingredients $ 4.40
Kitchen staff $ 6,130 Utilities $ 720 $ 0.40 Delivery person $ 3.20
Delivery vehicle $ 740 $ 1.40 Equipment depreciation $ 488 Rent $
2,090 Miscellaneous $ 840 $ 0.20 In November, the pizzeria budgeted
for 1,890 pizzas at an average selling price of $18 per pizza and
for 250 deliveries. Data concerning the pizzeria’s actual results
in November appear below: Actual Results Pizzas 1,990 Deliveries
230 Revenue $ 36,480 Pizza ingredients $ 9,190 Kitchen staff $
6,070 Utilities $ 940 Delivery person $ 736 Delivery vehicle $
1,008 Equipment depreciation $ 488 Rent $ 2,090 Miscellaneous $ 856
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 (i.e., zero variance). Input all amounts as
positive values.)
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 | 1990 | 1990 | 1890 | ||||
Deliveries | 230 | 230 | 250 | ||||
Revenue | 36480 | 660 | F | 35820 | 1800 | F | 34020 |
Expenses: | |||||||
Pizza ingredients | 9190 | 434 | U | 8756 | 440 | U | 8316 |
Kitchen staff | 6070 | 60 | F | 6130 | 0 | None | 6130 |
Utilities | 940 | 576 | F | 1516 | 40 | U | 1476 |
Delivery person | 736 | 0 | None | 736 | 64 | F | 800 |
Delivery vehicle | 1008 | 54 | F | 1062 | 28 | F | 1090 |
Equipment depreciation | 488 | 0 | None | 488 | 0 | None | 488 |
Rent | 2090 | 0 | None | 2090 | 0 | None | 2090 |
Miscellaneous | 856 | 382 | F | 1238 | 20 | U | 1218 |
Total expense | 21378 | 638 | F | 22016 | 408 | U | 21608 |
Net operating income | 15102 | 1298 | F | 13804 | 1392 | F | 12412 |
Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as...
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 pizzas sold and the number of deliveries made. The pizzeria's cost formulas appear below: Cost per Fixed Cost Cost per per Month Pizza Delivery $4.40 Pizza ingredients $6,138 720 Kitchen staff $0.40 Utilities $3.29 $1.49 Delivery person Delivery vehicle Equipment...
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 pizzas sold and the number of deliveries made. The pizzeria's cost formulas appear below: Fixed Cost per Month Cost per Pizza $ 4.40 cost per Delivery $6,130 $ 720 $ 0.40 Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle...
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 pizzas sold and the number of deliveries made. Cost per Pizza 4.48 cost per Delivery The pizzeria's cost formulas appear below. Fixed Cost per Month Pizza ingredients Kitchen staff 56,130 Utilities $ 720 Delivery person Delivery vehicle Equipment depreciation...
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 pizzas sold and the
number of deliveries made.
The pizzeria’s cost formulas appear below:
Fixed Cost
per Month
Cost per
Pizza
Cost per
Delivery
Pizza ingredients
$
4.10
Kitchen staff
$
6,070
Utilities
$
690
$
0.10
Delivery person
$...
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 pizzas sold and the
number of deliveries made.
The pizzeria’s cost formulas appear below:
Fixed Cost
per Month
Cost per
Pizza
Cost per
Delivery
Pizza ingredients
$
4.10
Kitchen staff
$
6,290
Utilities
$
800
$
0.20
Delivery person
$...
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 pizzas sold and the
number of deliveries made. The pizzeria’s cost formulas appear
below:
Fixed Cost
per Month
Cost per
Pizza
Cost per
Delivery
Pizza ingredients
$
4.30
Kitchen staff
$
5,890
Utilities
$
600
$
0.20
Delivery person
$...
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 pizzas sold and the number of deliveries made. The pizzeria’s cost formulas appear below: Fixed Cost per Month Cost per Pizza Cost per Delivery Pizza ingredients $ 4.10 Kitchen staff $ 6,070 Utilities $ 690 $ 0.10 Delivery person $...
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 pizzas sold and the
number of deliveries made.
The pizzeria’s cost formulas appear below:
Fixed Cost Cost per Cost per Delivery Pizza per Month Pizza ingredients Kitchen staff $ 4.70 $5,970 $ 0.60 Utilities 640 Delivery person Delivery vehicle Equipment...
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 pizzas sold and the
number of deliveries made.
The pizzeria’s cost formulas appear below:
Fixed Cost
per Month
Cost per
Pizza
Cost per
Delivery
Pizza ingredients
$
4.30
Kitchen staff
$
6,110
Utilities
$
710
$
0.30
Delivery person
$...
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 pizzas sold and the number of deliveries
made. The pizzeria’s cost formulas appear below: Fixed Cost per
Month Cost per Pizza Cost per Delivery Pizza ingredients $ 4.50
Kitchen staff $ 6,370 Utilities $ 840 $ 0.60 Delivery person $...