Milano Pizza is a small neighborhood pizzeria that has a sma

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 Cost per Pizza Delivery $4.28 per Month Pizza ingredients Kitchen staff Utilities $6,e90 s 700 $.20 $3.00 $1.20 Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous 720 s 472 $2,850 and for 230 deliveries In November, the pizzeria budgeted for 1.830 pizzas at an average selling price of $16 per pizza Data concerning the pizzeria\'s actual results in November appear below 1 of 2 Next e here to search DOLL

Solution

Particulars Cost formula Actual Revenue and spending variance Flexible budget Activity variance Static budget Pizza 1930 1930 1830 Delivery 210 210 230 Revenue 31520 640 F 30880 1600 F 29280 Expense Pizza ingridients 4.2p 8830 724 U 8106 420 U 7686 Kitchen staff 6090 6030 60 F 6090 0 6090 Utilities 700+.20p 930 156 F 1086 20 U 1066 Delivery person 3q 630 0 630 60 F 690 Delivery vehicle 720+1.2q 1004 32 U 972 24 F 996 Equipment depreciation 472 472 0 472 0 472 Rent 2050 2050 0 2050 0 2050 Miscellaneous 820+.1p 844 169 F 1013 10 U 1003 Total expense 20790 371 U 20419 366 U 20053 Net operating income 10730 269 F 10461 1234 F 9227