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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 $2.90
Delivery vehicle $710 $2.30
Equipment depreciation $464
Rent $2,030
Miscellaneous $810 $0.05
Data concerning the pizzeria's actual results in November appear below:
Actual Results
Pizzas 1,900
Deliveries 200
Revenue $29,130
Pizza ingredients $8,650
Kitchen staff $6,010
Utilities $925
Delivery person $580
Delivery vehicle $1,002
Miscellaneous $838
Question 1: Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November.
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