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Make a flexible budget performance report

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Reference no: EM13552798

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:


In November, the pizzeria budgeted for 1,200 pizzas at an average selling price of $13.50 per pizza and for 180 deliveries. Data concerning the pizzeria's operations in November appear below:


Required:

1. Prepare a flexible budget performance report that shows both activity variances and revenue and spending variances for the pizzeria for November.

2. Explain the activityvariances.

Reference no: EM13552798

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