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:
per MonthCost per
DeliveryPizza ingredients $4.00 Kitchen staff$6,050 Utilities$680 $1.00 Delivery person $2.80 Delivery vehicle$700 $2.20 Equipment depreciation$456 Rent$2,010 Miscellaneous$800 $.20
In November, the pizzeria budgeted for 1,770 pizzas at an average selling price of $14 per pizza and for 210 deliveries.
Data concerning the pizzeria's operations in November appear below:
ResultsPizzas 1,870Deliveries 190Revenue$26,800Pizza ingredients$8,470Kitchen staff$5,990Utilities$920Delivery person$532Delivery vehicle$1,000Equipment depreciation$456Rent$2,010Miscellaneous$832
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.)
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