the number of deliveries made 050 750 Solution Ans Milano

the number of deliveries made. $ 0.50 $ 750

Solution

Ans. Milano Pizza Flexible Budget Perfomance Report For the Month Ended November 30 Actual results Rev. & spend. variance Flexible budget Activity variance Planning budget Pizzas 2020 2020 1920 Deliveries 160 160 180 Revenue 39050 2370 U 41420 1520 F 39900 Expenses: 0 0 Pizza ingredients 9370 280 U 9090 450 U 8640 Kitchen staff 6090 60 F 6150 0 no effect 6150 Utilities 945 795 F 1740 50 U 1690 Delivery person 528 0 no effect 528 66 F 594 Delivery vehicle 1010 20 U 990 30 F 1020 Equipment depreciation 496 0 no effect 496 0 no effect 496 Rent 2110 0 no effect 2110 0 no effect 2110 Miscellenous 862 493 F 1355 25 U 1330 Total expenses 21411 1048 F 22459 429 U 22030 Net operating income 17639 1322 U 18961 1091 F 17870 0 *Calculation of flexible & Planning budget: Flexible budget Planning budget Pizzas 2020 1920 Deliveries 160 180 Revenue (2020+160)*19 (1920+180)*19 Expenses: Pizza ingredients 2020*4.50 1920*4.50 Kitchen staff 6150 6150 Utilities 730+(2020*0.50) 730+(1920*0.50) Delivery person 3.30*160 3.30*180 Delivery vehicle 750+(1.50*160) 750+(1.50*180) Equipment depreciation 496 496 Rent 2110 2110 Miscellenous 850+(2020*0.25) 850+(1920*0.25) *Revenue & spending variance = Actual results - Flexible budget *Activity variance = Flexible budget - Planning budget Increase in Revenue & Net operating income from Planning to Flexible & Flexible to Actual = Favorable. Decrease in Revenue & Net operating income from Planning to Flexible & Flexible to Actual = Unfavorable. Decrease in Expenses from Planning to Flexible & Flexible to Actual = Favorable. Increase in Expenses from Planning to Flexible & Flexible to Actual = Unfavorable. *Flexible budget is prepared on the basis of Actual units.