Answer Happy

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. Pizza Ingredients Kitchen start Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Fixed Cost Cost per Cost per per Month Pinna Delivery 5 3.80 $ 5,220 $ 630 $ 0.05 $ 3.50 $ 540 $ 1.50 $ 275 $ 1,830 $ 820 $ 0.15 In November, the pizzeria dgeted for 1.200 pizzas at an average selling price of $13.50 per pizza and for 180 deliveries Data concerning the pizzeria's actual results in November appear below. Piana Deliveries Actual resulta 1,240 174 Revenue Pizza ingredients Kitchen start Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 17, 420 $ 4,985 $ 5,281 $ 984 $ 609 $ 655 $ 275 3 1,830 5 954
Required: 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.) Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Flexible Budget Actual Results 1.240 Planning Budget Pizzas Deliveries 174 $ 17.420 Revenue Expenses Pizza ingredients Kitchen staff 4,985 5,281 984 Utilities Delivery person 609 Delivery vehicle Equipment depreciation Rent Miscellaneous Total expenso Net operating income 655 275 1,830 954 15,573 1,847 $