Problem 9-21 (Algo) More Than One Cost Driver [LO9-2, LO 9-3, LO 9-4, LO9-5] Milano Pizza...

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Problem 9-21 (Algo) More Than One Cost Driver [LO9-2, LO 9-3, LO 9-4, LO9-5] 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 Cost per Cost per Pizza Delivery per Month Pizza ingredients 4.60 Kitchen staff $5,950 Utilities 630 0.50 Delivery person $3.30 Delivery vehicle Equipment depreciation $ 650 $1.70 416 Rent $1,910 Miscellaneous $ 750 0.25 In November, the pizzeria budgeted for 1,620 pizzas at an average selling price of $17 per pizza and for 240 deliveries. Data concerning the pizzeria's actual results in November appear below Actual Results Pizzas 1,720 Deliveries 220 $29,810 $ 7,570 5,890 Revenue Pizza ingredients Kitchen staff $ Utilities $ 895 726 Delivery person Delivery vehicle Equipment depreciation 990 $ 416 Rent $ 1,910 Miscellaneous 802 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 &#34;F&#34; for favorable, &#34;U&#34; for unfavorable, and &#34;None&#34; 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 Actual Results Flexible Planning Budget Budget Pizzas 1,720 Deliveries 220 Revenue $ 29,810 Expenses: Pizza ingredients 7,570 Kitchen staff 5,890 Utilities 895 Delivery person 726 Delivery vehicle 990 Equipment depreciation 416 Rent 1,910 Miscellaneous 802 Total expense 19,199 Net operating income $ 10,611

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Answer      Actual Results   Revenue & Spending Variance   Flexible Budget   Activity Variances   Planning Budget     Pizzas                                    1,720                                       1,720                                                                   1,620     Deliveries                                         220                                          220                                                                      240               Revenues    $                     29,810.00    $                                   570.00   Favourable    $                     29,240.00    $                                          1,700.00   Favourable    $                                                 27,540.00     Expenses:            Pizza Ingrediants    $                        7,570.00    $                                   342.00   Favourable    $                       7,912.00    $                                              460.00   Unfavourable    $                                                    7,452.00     kitchen Staff    $                        5,890.00    $                                     60.00   Favourable    $                       5,950.00    $                                                       -     None    $                                                    5,950.00     Utilities    $                           895.00    $                                   595.00   Favourable    $                       1,490.00    $                                                50.00   Unfavourable    $                                                    1,440.00     Delivery Person    $                           726.00   $                                            -     None    $                           726.00    $                                                66.00   Favourable    $                                                       792.00     Delivery Vehicle    $                           990.00    $                                     34.00   Favourable    $                       1,024.00    $                                                34.00   Favourable    $                                                    1,058.00     Equipment Depreciation    $                           416.00    $                                            -     None    $                           416.00    $                                                       -     None    $                                                       416.00     Rent    $                        1,910.00    $                                            -     None    $                       1,910.00    $                                                       -     None    $                                                    1,910.00     Miscellaneous    $                           802.00    $                                   378.00   Favourable    $                       1,180.00    $                                                25.00   Unfavourable   $                                                   1,155.00     Total Expenses    $                     19,199.00    $                               1,409.00   Favourable    $                     20,608.00    $                                              435.00   Unfavourable    $                                                 20,173.00     Net Operating Income    $                     10,611.00    $                               1,979.00   Favourable    $                       8,632.00    $                                          1,265.00   Favourable    $                                                    7,367.00     --Working      Actual Results   Flexible Budget   Planning Budget     Pizzas   1720   1720   1620     Deliveries   220   220   240           Revenues   29810   =1720*17   =1620*17     Expenses:        Pizza Ingrediants   7570   =1720*4.6   =1620*4.6     kitchen Staff   5890   5950   5950     Utilities   895   =630+(1720*0.5)   =630+(1620*0.5)     Delivery Person   726   =220*3.3   =240*3.3     Delivery Vehicle   990   =650+(220*1.7)   =650+(240*1.7)     Equipment Depreciation   416   416   416     Rent   1910   1910   1910     Miscellaneous   802   =750+(1720*0.25)   =750+(1620*0.25)    .

Problem 9-21 (Algo) More Than One Cost Driver [LO9-2, LO 9-3, LO 9-4, LO9-5] Milano Pizza...

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	Actual Results	Revenue & Spending Variance		Flexible Budget	Activity Variances		Planning Budget
Pizzas	1,720			1,720			1,620
Deliveries	220			220			240

Revenues	$ 29,810.00	$ 570.00	Favourable	$ 29,240.00	$ 1,700.00	Favourable	$ 27,540.00
Expenses:
Pizza Ingrediants	$ 7,570.00	$ 342.00	Favourable	$ 7,912.00	$ 460.00	Unfavourable	$ 7,452.00
kitchen Staff	$ 5,890.00	$ 60.00	Favourable	$ 5,950.00	$ -	None	$ 5,950.00
Utilities	$ 895.00	$ 595.00	Favourable	$ 1,490.00	$ 50.00	Unfavourable	$ 1,440.00
Delivery Person	$ 726.00	$ -	None	$ 726.00	$ 66.00	Favourable	$ 792.00
Delivery Vehicle	$ 990.00	$ 34.00	Favourable	$ 1,024.00	$ 34.00	Favourable	$ 1,058.00
Equipment Depreciation	$ 416.00	$ -	None	$ 416.00	$ -	None	$ 416.00
Rent	$ 1,910.00	$ -	None	$ 1,910.00	$ -	None	$ 1,910.00
Miscellaneous	$ 802.00	$ 378.00	Favourable	$ 1,180.00	$ 25.00	Unfavourable	$ 1,155.00
Total Expenses	$ 19,199.00	$ 1,409.00	Favourable	$ 20,608.00	$ 435.00	Unfavourable	$ 20,173.00
Net Operating Income	$ 10,611.00	$ 1,979.00	Favourable	$ 8,632.00	$ 1,265.00	Favourable	$ 7,367.00