Reference no: EM132619064
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.
Data concerning the pizzeria's costs appear below:
Fixed Cost per Month Cost per Pizza Cost per Delivery
Pizza ingredients $4.00
Kitchen staff $6,270
Utilities $790 $.10
Delivery person $2.90
Delivery vehicle $810 $2.10
Equipment depreciation $544
Rent $2,230
Miscellaneous $910 $.05
In November, the pizzeria budgeted for 2,100 pizzas at an average selling price of $17 per pizza and for 240 deliveries.
Data concerning the pizzeria's operations in November appear below:
Actual Results
Pizzas 2,200
Deliveries 220
Revenue $38,130
Pizza ingredients $10,450
Kitchen staff $6,210
Utilities $975
Delivery person $638
Delivery vehicle $1,022
Equipment depreciation $544
Rent $2,230
Miscellaneous $898
Required:
Problem 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.)