Milano Pizza is a small neighborhood pizzeria that has a small area for in-store
ID: 2563345 • Letter: M
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:
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:
i Chrome File Edit ie History Bookmarks People Window Help D, Sun 1 1 :40 AM a E BbGarrison CH9 Quiz l@ ezto.mheducation.com/hm.tpx S 594 S 1,030 S 576 S 2,310 S 922 Delivery person Delivery vehicle Rent Required: 1. Complete the flexible budget performance report that shows both revenue and spending variances and activity 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.) Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Planning Budget Actual Flexible Budget Revenue and Spending Activity Variances $ 49,490 Expenses Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous 11,170 6,290 995 594 1,030 576 2,310 922 23,887 $ 25,603 Total expense Net operating incomeExplanation / Answer
Actual results
Revenue and Spending variances
Flexible budget
Activity variances
Planning budget
Pizzas
2,320
2320
2,220
Deliveries
180
180
200
Revenue
$ 49,490.00
$ 770.00
F
$ 48,720.00
$ 2,100.00
F
$ 46,620.00
Expenses:
Pizza ingredients
$ 11,170.00
$ 962.00
U
$ 10,208.00
$ 440.00
U
$ 9,768.00
Kitchen staff
$ 6,290.00
$ 60.00
F
$ 6,350.00
$ 0.00
F
$ 6,350.00
Utilities
$ 995.00
$ 995.00
F
$ 1,990.00
$ 50.00
U
$ 1,940.00
Delivery person
$ 594.00
$ 0.00
F
$ 594.00
$ 66.00
F
$ 660.00
Delivery vehicle
$ 1,030.00
$ 72.00
F
$ 1,102.00
$ 28.00
F
$ 1,130.00
Equipment depreciation
$ 576.00
$ 0.00
F
$ 576.00
$ 0.00
F
$ 576.00
Rent
$ 2,310.00
$ 0.00
F
$ 2,310.00
$ 0.00
F
$ 2,310.00
Miscellaneous
$ 922.00
$ 608.00
F
$ 1,530.00
$ 25.00
U
$ 1,505.00
Total expense
$ 23,887.00
$ 773.00
F
$ 24,660.00
$ 421.00
U
$ 24,239.00
Net operating income
$ 25,603.00
$ 1,543.00
F
$ 24,060.00
$ 1,679.00
F
$ 22,381.00
Actual results
Revenue and Spending variances
Flexible budget
Activity variances
Planning budget
Pizzas
2,320
2320
2,220
Deliveries
180
180
200
Revenue
$ 49,490.00
$ 770.00
F
$ 48,720.00
$ 2,100.00
F
$ 46,620.00
Expenses:
Pizza ingredients
$ 11,170.00
$ 962.00
U
$ 10,208.00
$ 440.00
U
$ 9,768.00
Kitchen staff
$ 6,290.00
$ 60.00
F
$ 6,350.00
$ 0.00
F
$ 6,350.00
Utilities
$ 995.00
$ 995.00
F
$ 1,990.00
$ 50.00
U
$ 1,940.00
Delivery person
$ 594.00
$ 0.00
F
$ 594.00
$ 66.00
F
$ 660.00
Delivery vehicle
$ 1,030.00
$ 72.00
F
$ 1,102.00
$ 28.00
F
$ 1,130.00
Equipment depreciation
$ 576.00
$ 0.00
F
$ 576.00
$ 0.00
F
$ 576.00
Rent
$ 2,310.00
$ 0.00
F
$ 2,310.00
$ 0.00
F
$ 2,310.00
Miscellaneous
$ 922.00
$ 608.00
F
$ 1,530.00
$ 25.00
U
$ 1,505.00
Total expense
$ 23,887.00
$ 773.00
F
$ 24,660.00
$ 421.00
U
$ 24,239.00
Net operating income
$ 25,603.00
$ 1,543.00
F
$ 24,060.00
$ 1,679.00
F
$ 22,381.00