Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and freehome delivery services. The pizzeria's owner has determined that the shop has two major cost drivers-the number of pizzassold and the number of deliveries made.The pizzeria's cost formulas appear below:FixedCost perMonthPizza ingredientsKitchen staffUtilitiesDelivery personDelivery vehicleEquipment depreciationRentMiscellaneous$ 6,210$ 760PizzasDeliveriesRevenuePizza ingredientsKitchen staffUtilitiesDelivery personDelivery vehicleEquipment depreciationRentMiscellaneous$ 780$ 520$ 2,170$ 880ActualResults2,110190$ 30,240$ 9,910$ 6,150$ 960$ 4941,016$ 520$ 2,170$ 880Cost perPizza$ 4.80$ 0.80$$ 0.20In November, the pizzeria budgeted for 2,010 pizzas at an average selling price of $14 per pizza and for 210 deliveries.Data concerning the pizzeria's actual results in November appear below:cost perDelivery$ 2.60$ 1.80Required:1. Compute the revenue and spending variances for the pizzeria for November. (Indicate the effect of each variance byselecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts aspositive values.)Milano PizzaRevenue and Spending VariancesFor the Month Ended November 30ActualResultsRevenue and SpendingVariancesFlexibleBudget

The variance seems to be the difference between the actual and budgeted results within the budgetary…

Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out ar home delivery services. The pizzeria's owner has determined that the shop has two major cost drivers-the number sold and the number of deliveries made. The pizzeria's cost formulas appear below: Fixed Cost per Cost per Month Pizza Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 6,210 $ 760 $ 780 $ 520 $ 2,170 $ 880 $ 4.80 $ 0.80 $ 0.20 Cost per Delivery $ 2.60 $ 1.80 In November, the pizzeria budgeted for 2,010 pizzas at an average selling price of $14 per pizza and for 210 del

Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out ar home delivery services. The pizzeria's owner has determined that the shop has two major cost drivers-the number sold and the number of deliveries made. The pizzeria's cost formulas appear below: Fixed Cost per Cost per Month Pizza Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 6,210 $ 760 $ 780 $ 520 $ 2,170 $ 880 $ 4.80 $ 0.80 $ 0.20 Cost per Delivery $ 2.60 $ 1.80 In November, the pizzeria budgeted for 2,010 pizzas at an average selling price of $14 per pizza and for 210 del

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Lucerne pizza is a small neighborhood pizzeria that has a small area for in-store dining as well offering takeout 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 ................ $5.00 Kitchen staff ...................... $5,800 Utilities .............................. 520 $.10 Delivery person .................. $2.90 Delivery vehicle .................. 680 $2.10 Equipment depreciation ...... 387 Rent .................................. 1,730 Miscellaneous ..................... 730 $.01 In October, the pizzeria budgeted for 2,000 pizzas at an average selling price of $13.00 per pizza and for 190 deliveries. Data concerning the pizzeria’s…
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 Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent $ 5,910 $ 610 Miscellaneous $ 630 $ 400 $ 1,870 $ 730 In November, the pizzeria budgeted for 1,560 pizzas at an average selling price of $15 per pizza and for 220 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Results. 1,660 200 $ 25,450 $ 7,210 $ 5,850 $ 885 $ 620 $ 986 $ 400 Cost per Pizza $ 4.40 $ 1,870 $ 790 $ 0.30 Cost per Delivery $ 0.15 $ 3.10 $…
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 . . . . . . . . . $3.80 Kitchen staff . . . . . . . . . . . . $5,220 Utilities . . . . . . . . . . . . . . . . $630 $0.05 Delivery person . . . . . . . . . . $3.50 Delivery vehicle . . . . . . . . . . $540…
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 Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous 4 Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle. Equipment depreciation Rent Miscellaneous Pizzas Deliveries Revenue Expenses: Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent $ 6,250 $ 780 $ 0.10 In November, the pizzeria budgeted for 2,070 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: Miscellaneous Total expense…
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 Cost per Cost per per Month Pizza Delivery Pizza ingredients $ 4.20 $6,310 $ Kitchen staff Utilities 810 $ 0.30 Delivery person Delivery vehicle Equipment depreciation $3.10 $1.20 $ 830 560 Rent $ 2,270 Miscellaneous 930 $ 0.15 In November, the pizzeria budgeted for 2,160 pizzas at an average selling price of $19 per pizza and for 180 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results Pizzas 2,260 Deliveries 160 $ 43,690 $ 10,810 $4 Revenue Pizza ingredients Kitchen staff 6,250 $4 $ $ Utilities 985 Delivery person 496 Delivery vehicle Equipment depreciation 1,026 2$ $4 560 Rent 2,270 Miscellaneous…
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 Costper Month Cost perPizza Cost perDelivery Pizza ingredients $ 4.60 Kitchen staff $ 6,170 Utilities $ 740 $ 0.60 Delivery person $ 3.40 Delivery vehicle $ 760 $ 1.60 Equipment depreciation $ 504 Rent $ 2,130 Miscellaneous $ 860 $ 0.20 In November, the pizzeria budgeted for 1,950 pizzas at an average selling price of $20 per pizza and for 190 deliveries. Data concerning the pizzeria’s actual results in November appear below: Actual Results Pizzas 2,050 Deliveries 170 Revenue $ 41,680 Pizza…
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 Costper Month Cost perPizza Cost perDelivery Pizza ingredients $ 4.00 Kitchen staff $ 6,050 Utilities $ 680 $ 1.00 Delivery person $ 2.80 Delivery vehicle $ 700 $ 2.20 Equipment depreciation $ 456 Rent $ 2,010 Miscellaneous $ 800 $ 0.20 In November, the pizzeria budgeted for 1,770 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 1,870 Deliveries 190 Revenue $ 26,800 Pizza…
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 Costper Month Cost perPizza Cost perDelivery Pizza ingredients $ 4.40 Kitchen staff $ 5,910 Utilities $ 610 $ 0.30 Delivery person $ 3.10 Delivery vehicle $ 630 $ 1.50 Equipment depreciation $ 400 Rent $ 1,870 Miscellaneous $ 730 $ 0.15 In November, the pizzeria budgeted for 1,560 pizzas at an average selling price of $15 per pizza and for 220 deliveries. Data concerning the pizzeria’s actual results in November appear below: Actual Results Pizzas 1,660 Deliveries 200 Revenue $ 25,450 Pizza…
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 $ 4.90 Kitchen staff $ 6,010 Utilities $ 660 $ 0.80 Delivery person $ 2.60 Delivery vehicle $ 680 $ 2.00 Equipment depreciation $ 440 Rent $ 1,970 Miscellaneous $ 780 $ 0.10 In November, the pizzeria budgeted for 1,710 pizzas at an average selling price of $20 per pizza and for 190 deliveries. Data concerning the pizzeria’s actual results in November were as follows: Actual Results Pizzas 1,810 Deliveries 170 Revenue $ 36,800 Pizza ingredients $ 8,110 Kitchen staff $ 5,950 Utilities $ 910 Delivery person $…
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 Kitchen staff Utilities $ 4.80 $ 6,210 $ 760 $ 0.80 Delivery person Delivery vehicle Equipment depreciation $ 2.60 5 1.80 $ 780 $ 520 $ 2,170 $ 880 Rent Miscellaneous S 0.20 In November, the pizzeria budgeted for 2,010 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 Resulta Pizzas 2,110 Deliveries 190 Revenue $ 30,240 $ 9,910 $ 6,150 $ 960 Pizza ingredients Kitchen staft Utilities Delivery person Delivery vehicle Equí pment depreciation Rent $494 $ 1,016 $ 520 $ 2,170 $ 880…
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 MonthCost per PizzaCost per DeliveryPizza ingredients $ 4.10 Kitchen staff$ 6,290 Utilities$ 800$ 0.20 Delivery person $ 3.00Delivery vehicle$ 820 $ 2.20Equipment depreciation$ 552 Rent$ 2,250 Miscellaneous$ 920$ 0.10 In November, the pizzeria budgeted for 2,130 pizzas at an average selling price of $18 per pizza and for 250 deliveries. Data concerning the pizzeria’s actual results in November were as follows: Actual ResultsPizzas2,230Deliveries230Revenue$ 40,880Pizza ingredients$ 10,630Kitchen staff$ 6,230Utilities$ 980Delivery person$ 690Delivery vehicle$ 1,024Equipment depreciation$ 552Rent$ 2,250Miscellaneous$ 904 Required:  1.…
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 $ 4.60 Kitchen staff $ 5,950 Utilities $ 630 $ 0.50 Delivery person $ 3.30 Delivery vehicle $ 650 $ 1.70 Equipment depreciation $ 416 Rent $ 1,910 Miscellaneous $ 750 $ 0.25 In November, the pizzeria budgeted for 1,620 pizzas at an average selling price of $17 per pizza and for 240 deliveries. Data concerning the pizzeria’s actual results in November appear below: Actual Results Pizzas 1,720 Deliveries 220 Revenue $ 29,810 Pizza ingredients $ 7,570 Kitchen staff $ 5,890 Utilities $ 895 Delivery person $ 726…