PROBLEM 9-19 More than One Cost Driver LO9-2, LO9-3, LO9-5, LO9-6 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: In November, the pizzeria budgeted for 1,200 pizzas at an average selling price of $13.50 per pizza and for 180 deliveries. Data concerning the pizzeria's actual results in November were as follows: Required: 1. Using Exhibit 911 as your guide, prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November. 2. Explain the activity variances. Milano Pizzo Flexible Budget Performance Report For the Month Ended Novernber 30 Net operating income 2. Please comment on the activity variances and the spending variances (please note the book is only asking for activity variances, but please cover both). What can you observe? What could be the reasons for these variances