Pierre Pizza is a gourmet pizza shop in Palm Springs. It offers in store dining as...
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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: Pizza ingredients $0 Kitchen staff $ 5,220 Utilities $ 1,450 Delivery $ 540 Rent $ 2,105 Deliveries Revenue Fixed cost Cost per pizza Cost per delivery per month Pizza ingredients Kitchen staff Utilities $ 3.80 $0 $ 0.2 $0 Delivery Rent 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 $ 17,420 4,985 5,281 1,938 1,264 2,105 Net operating income $ 1,847 1,240 174 $ 0 $ 0 $ 0 $ Oin 5 Required: Prepare a report showing the restaurant's revenue and spending variances for May. Don't forget to interpret your results. 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: Pizza ingredients $0 Kitchen staff $ 5,220 Utilities $ 1,450 Delivery $ 540 Rent $ 2,105 Deliveries Revenue Fixed cost Cost per pizza Cost per delivery per month Pizza ingredients Kitchen staff Utilities $ 3.80 $0 $ 0.2 $0 Delivery Rent 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 $ 17,420 4,985 5,281 1,938 1,264 2,105 Net operating income $ 1,847 1,240 174 $ 0 $ 0 $ 0 $ Oin 5 Required: Prepare a report showing the restaurant's revenue and spending variances for May. Don't forget to interpret your results.
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Answer rating: 100% (QA)
To analyze Pierre Pizzas revenue and spending variances for May well compare the actual results with the budgeted amounts Lets calculate the variances for each category 1 Revenue Variance Actual Reven... 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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