Problem $9-19($Algo$)$ More Than One Cost Driver $[$LO$9-2,$ LO$9-3]$

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 Cost per Pizza Cost per Delivery

Pizza ingredients $ $4\mathrm{.}50$

Kitchen staff $ $5,930$

Utilities $ $620$ $ $0\mathrm{.}40$

Delivery person $ $3\mathrm{.}20$

Delivery vehicle $ $640$ $ $1\mathrm{.}60$

Equipment depreciation $ $408$

Rent $ $1,890$

Miscellaneous $ $740$ $ $0\mathrm{.}20$

In November, the pizzeria budgeted for $1,590$ pizzas at an average selling price of $$16$ per pizza and for $230$ deliveries.

Data concerning the pizzeria$$s actual results in November appear below:

Actual Results

Pizzas $1,690$

Deliveries $210$

Revenue $ $27,600$

Pizza ingredients $ $7,390$

Kitchen staff $ $5,870$

Utilities $ $890$

Delivery person $ $672$

Delivery vehicle $ $988$

Equipment depreciation $ $408$

Rent $ $1,890$

Miscellaneous $ $796$

Required:

$1.$ Compute the revenue and spending 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.$)$