PROBLEM $8-19$A More Than One Cost Driver $[$LO$2,$ LO$3]$

Verona Pizza is a small neighborhood pizzeria that has a small area for in$-$store dining as well offering takeout 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. Data concerning the pizzeria's costs appear below:

$\backslash$table$[[,$Fixed Cost per Month,Cost per Pizza,Cost per Delivery$],[$Pizza ingredients $...............,,$$$4\mathrm{.}20,],[$Kitchen staff......................,$$5,870,,],[$Utilities$............................,$$$590,$$$0\mathrm{.}10,],[$Delivery person.................,,,$$2\mathrm{.}90],[$Delivery vehicle $.................,$$$610,,$$$1\mathrm{.}30],[$Equipment depreciation......,$$384,,],[$Rent$...............................,$$$1,790,,],[$Miscellaneous$...................,$$$710,$$$0\mathrm{.}05,]]$

In October, the pizzeria budgeted for $1,500$ pizzas at an average selling price of $$13\mathrm{.}00$ per pizza and for $200$ deliveries.

Data concerning the pizzeria's operations in October appear below:

$\backslash$table$[[,$Actual Results$],[$Pizzas$....,],[$Deliveries$......................................,1,600],[$Revenue $..................................,180],[$Pizza ingredients $............................................,$$$21,340],[$Kitchen staff..........................,$$6,850],[$Utilities $...................................................,$$$5,810],[$Delivery person.................................................,$$875],[$Delivery vehicle $.......................,$$$522],[$Equipment depreciation...............,$$982],[$Rent$...............................,$$$384],[$Miscellaneous$,$$$1,790],[,$$$778]]$

Required:

Compute the revenue and spending variances for the pizzeria for October.

Explain the revenue and spending variances.