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Question - 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.
Data concerning the pizzeria's costs appear below:
Fixed Cost per Month
Cost per Pizza
Cost per Delivery
Pizza ingredients
$4.30
Kitchen staff
$6,110
Utilities
$710
$.30
Delivery person
$3.10
Delivery vehicle
$730
$1.30
Equipment depreciation
$480
Rent
$2,070
Miscellaneous
$830
$15
In November, the pizzeria budgeted for 1,860 pizzas at an average selling price of $17 per pizza and for 240 deliveries.
Data concerning the pizzeria's operations in November appear below:
Actual Results
Pizzas
1,960
Deliveries
220
Revenue
$33,970
$9,010
$6,050
$935
$682
$1,006
$850
Required: Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November.
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