Solution-Complete the flexible budget performance report

Complete the flexible budget performance report

Assignment Help Managerial Accounting

Reference no: EM133126608

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		$4.50
Kitchen staff	$5,930
Utilities	$620	$0.40
Delivery person			$3.20
Delivery vehicle	$640		$1.60
Equipment depreciation	$408
Rent	$1,890
Miscellaneous	$740	$0.20

In November, the pizzeria budgeted for 1,590 pizzas at an average selling price of $16 per pizza and for 230 deliveries.

Data concerning the pizzeria's actual results in November were as follows:

	Actual Results
Pizzas	1,690
Deliveries	210
Revenue	$27,600
Pizza ingredients	$7,390
Kitchen staff	$5,870
Utilities	$890
Delivery person	$672
Delivery vehicle	$988
Equipment depreciation	$408
Rent	$1,890
Miscellaneous	$796

Required - Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November.

Reference no: EM133126608

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Complete the flexible budget performance report

Reference no: EM133126608

Reference no: EM133126608

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