1. (8 points) Pie Guys Pizzeria is owned and operated by three brothers. Data concerning the...

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1. (8 points) Pie Guys Pizzeria is owned and operated by three brothers. Data concerning the pizzeria's monthly revenues and costs appear below (q refers to the number of pizzas served): Formula Revenue $14.75q Cost of ingredients $4.40q Rent $2,200 Utilities $300 + $0.40q Salaries $6,000 $500+ $.65q Miscellaneous Actual results for February appear below. Prepare a flexible budget performance report for the pizzeria for February for 1,350 pizzas. Revenue Cost of ingredients Rent Utilities Salaries $20,100 5,820 2,250 908 6,100 1,350 Miscellaneous Required: a. Prepare a budget for 1,250 pizzas (this is the planning budget). b. Prepare a budget for 1,350 pizzas (this is the flexible budgery c. Compute the activity variances between the two budgets and revenue/spending variances between the actual data and the flexible budget. Also indicate whether the variance is favorable or unfavorable. Actual Units Revenue Expenses: Cost of ingredients Rent Utilities Salaries Miscellaneous Total expenses Net operating income Actual Results Revenue & Spending Flexible Budget Activity Variances Planning Budget Variances 1. (8 points) Pie Guys Pizzeria is owned and operated by three brothers. Data concerning the pizzeria's monthly revenues and costs appear below (q refers to the number of pizzas served): Formula Revenue $14.75q Cost of ingredients $4.40q Rent $2,200 Utilities $300 + $0.40q Salaries $6,000 $500+ $.65q Miscellaneous Actual results for February appear below. Prepare a flexible budget performance report for the pizzeria for February for 1,350 pizzas. Revenue Cost of ingredients Rent Utilities Salaries $20,100 5,820 2,250 908 6,100 1,350 Miscellaneous Required: a. Prepare a budget for 1,250 pizzas (this is the planning budget). b. Prepare a budget for 1,350 pizzas (this is the flexible budgery c. Compute the activity variances between the two budgets and revenue/spending variances between the actual data and the flexible budget. Also indicate whether the variance is favorable or unfavorable. Actual Units Revenue Expenses: Cost of ingredients Rent Utilities Salaries Miscellaneous Total expenses Net operating income Actual Results Revenue & Spending Flexible Budget Activity Variances Planning Budget Variances

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Pie Guys Pizzeria Flexible Budget Performance Report February Units 1350 Pizzas a Planning Budget 12... View the full answer