Reference no: EM132757738
Question - 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 $3.00
Delivery vehicle $620 $1.40
Equipment depreciation $392
Rent $1,850
Miscellaneous $720 $0.10
In November, the pizzeria budgeted for 1,530 pizzas at an average selling price of $14 per pizza and for 210 deliveries.
Data concerning the pizzeria's actual results in November appear below:
Actual Results Pizzas 1,630 Deliveries 190 Revenue $23,360 Pizza ingredients $7,030 Kitchen staff $5,830 Utilities $880 Delivery person $570 Delivery vehicle $984 Equipment depreciation $392 Rent $1,850 Miscellaneous $784
Required - Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November.