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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 ingredients Pizza $ 3.80 Delivery Kitchen staff $ 5,220 Utilities $ 630 $ 0.05 Delivery person $ 3.50 Delivery vehicle $ 540 $ 1.50 Equipment depreciation $ 275 Rent $ 1,830 Miscellaneous $ 820 $ 0.15 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 actual results in November were as follows: Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Actual Results 1,240 174 Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Required: $ 17,420 $ 4,985 $ 5,281 $ 984 $ 609 $ 655 $ 275 $ 1,830 $ 954 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

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 ingredients Pizza $ 3.80 Delivery Kitchen staff $ 5,220 Utilities $ 630 $ 0.05 Delivery person $ 3.50 Delivery vehicle $ 540 $ 1.50 Equipment depreciation $ 275 Rent $ 1,830 Miscellaneous $ 820 $ 0.15 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 actual results in November were as follows: Pizzas Deliveries Revenue Pizza ingredients Kitchen staff Actual Results 1,240 174 Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Required: $ 17,420 $ 4,985 $ 5,281 $ 984 $ 609 $ 655 $ 275 $ 1,830 $ 954 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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 Cost per Pizza $ 3.80 Cost per Delivery Kitchen staff $ 5,220 Utilities $ 630 $ 0.05 Delivery person $ 540 $ 3.50 $ 1.50 Equipment depreciation $ 275 $ 1,830 $ 820 $ 0.15 Delivery vehicle Rent Miscellaneous 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 actual results in November were as follows: Actual Results Pizzas Deliveries Revenue Kitchen staff 1,240 174 $ 17,420 Pizza ingredients $ 4,985 $ 5,281 $ 984 $ 609 $ 655 $ 275 Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Required: $ 1,830 $ 954 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.) Pizzas Deliveries Actual Results 1,240 174 $ 17,420 Revenue Expenses: Pizza ingredients 4,985 Kitchen staff 5,281 Utilities 984 Delivery person 609 Delivery vehicle 655 Equipment depreciation 275 Rent 1,830 Miscellaneous 954 Total expense 15,573 Net operating income $ 1,847 Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Flexible Planning Budget Budget
Transcribed Image Text: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 Cost per Pizza $ 3.80 Cost per Delivery Kitchen staff $ 5,220 Utilities $ 630 $ 0.05 Delivery person $ 540 $ 3.50 $ 1.50 Equipment depreciation $ 275 $ 1,830 $ 820 $ 0.15 Delivery vehicle Rent Miscellaneous 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 actual results in November were as follows: Actual Results Pizzas Deliveries Revenue Kitchen staff 1,240 174 $ 17,420 Pizza ingredients $ 4,985 $ 5,281 $ 984 $ 609 $ 655 $ 275 Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous Required: $ 1,830 $ 954 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.) Pizzas Deliveries Actual Results 1,240 174 $ 17,420 Revenue Expenses: Pizza ingredients 4,985 Kitchen staff 5,281 Utilities 984 Delivery person 609 Delivery vehicle 655 Equipment depreciation 275 Rent 1,830 Miscellaneous 954 Total expense 15,573 Net operating income $ 1,847 Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Flexible Planning Budget Budget
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