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Question - Rob's Mobile Pizza Unit is a mobile wood-burning pizza oven that Rob sets up at local events. Rob budgets to sell his pizzas for $15 each, but customers can pay more for extra toppings. The pizzas cost him $6 to make on average. At the local music festival last weekend, Rob thought he would sell 300 pizzas, but he actually sold 320. His total revenue for the weekend was $5,120, and he spent $2,080 on food.
Required -
a) Calculate the total static budget variance.
b) Calculate the total sales-volume variance.
c) Calculate the total flexible budget variance.
d) Explain the flexible budget variance.
e) Explain some possible reasons for the flexible budget variance.
f) Calculate the sales price variance.
g) Calculate the cost variance.
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