Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as...
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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 $ 4.30 Cost per Delivery Kitchen staff $ 6,330 Utilities $ 820 $ 0.40 Delivery person Delivery vehicle $ 840 $ 3.20 $ 1.30 Equipment depreciation $ 568 Rent $ 2,290 Miscellaneous $ 940 $ 0.20 In November, the pizzeria budgeted for 2,190 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 2,290 Pizzas Deliveries Revenue Kitchen staff 170 $ 46,560 Pizza ingredients $ 10,990 $ 6,270 Utilities Delivery person $ 990 $ 544 $ 1,028 $ 568 $ 2,290 $ 916 Delivery vehicle Equipment depreciation Rent Miscellaneous Required: 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 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 $ 4.30 Cost per Delivery Kitchen staff $ 6,330 Utilities $ 820 $ 0.40 Delivery person Delivery vehicle $ 840 $ 3.20 $ 1.30 Equipment depreciation $ 568 Rent $ 2,290 Miscellaneous $ 940 $ 0.20 In November, the pizzeria budgeted for 2,190 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 2,290 Pizzas Deliveries Revenue Kitchen staff 170 $ 46,560 Pizza ingredients $ 10,990 $ 6,270 Utilities Delivery person $ 990 $ 544 $ 1,028 $ 568 $ 2,290 $ 916 Delivery vehicle Equipment depreciation Rent Miscellaneous Required: 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.)
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Answer rating: 100% (QA)
Answer To complete the flexible budget performance report for Milano Pizza for November we need to calculate the following variances 1 Revenue varianc... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0077522940
15th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
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