Milano Pizza has a small area for in$-$store dining as well as offers take$-$out and free home delivery services. The pizzeria$$s owner determined the shop has two major cost drivers$$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 $ $4\mathrm{.}80$

Kitchen staff $ $6,210$

Utilities $ $760$ $ $0\mathrm{.}80$

Delivery person $ $2\mathrm{.}60$

Delivery vehicle $ $780$ $ $1\mathrm{.}80$

Equipment depreciation $ $520$

Rent $ $2,170$

Miscellaneous $ $880$ $ $0\mathrm{.}20$

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 were as follows:

Actual Results

Pizzas $2,110$

Deliveries $190$

Revenue $ $30,240$

Pizza ingredients $ $9,910$

Kitchen staff $ $6,150$

Utilities $ $960$

Delivery person $ $494$

Delivery vehicle $ $1,016$

Equipment depreciation $ $520$

Rent $ $2,170$

Miscellaneous $ $880$

Required:

$1.$ Complete the flexible budget performance report for November.

Note: 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.

Answer rating: 100% (QA)

AnswerFlexible Budget Performance Report for November Static Budget Flexib... View the full answer