Chapter 9: Flex Budgeting and Variance Analysis Part 2 Pierre Pizza is a gourmet pizza shop in Palm Springs. It offers in store dining as well as take out and free home delivery services. The owner has determined that the shop has 2 major cost drivers - the number of pizzas sold and the number of deliveries made. Data for the cost formulas appear below: Fixed cost per month Cost per pizza Cost per delivery Pizza ingredients $ 0 $ 3.80 $ 0 Kitchen staff $ 5,220 $ 0 $ 0 Utilities $ 1,450 $ 0.2 $ 0 Delivery $ 540 $ 0 $ 5 Rent $ 2,105 In May, the restaurant budgeted for 1,200 pizzas at an average selling price of $13.50 per pizza and for 180 deliveries. Actual May results appear below: Actual Results: Pizzas 1,240 Deliveries 174 Revenue $ 17,420 Pizza ingredients 4,985 Kitchen staff 5,281 Utilities 1,938 Delivery 1,264 Rent 2,105 Net operating income $ 1,847 Required: Prepare a report showing the restaurant's revenue and spending variances for May. Label each variance as favorable (F) or unfavorable (U).