Do not give image format Milano Pizza has a small area for in-store dining as well as offers take-out and free home delivery services. The pizzeria's ownerdetermined 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:Pizza ingredientsKitchen staffUtilitiesDelivery personDelivery vehicleEquipment depreciationRentMiscellaneousFixed Costper MonthPizzasDeliveriesRevenuePizza ingredientsKitchen staffUtilitiesDelivery personDelivery vehicleEquipment depreciationRentMiscellaneous$6,030$ 670ActualResults1,840180Cost perPizza$5.00$0.90$ 690$448$ 1,990$790In November, the pizzeria budgeted for 1,740 pizzas at an average selling price of $13 per pizza and for 200 deliveries.Data concerning the pizzeria's actual results in November were as follows:$ 24,530$ 8,290$5,970$915$486$998$448$ 1,990$ 826Cost perDelivery$ 0.15$2.70$ 2.10 Required:1. Complete the flexible budget performance report for November.Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.evariance). Input all amounts as positive values.PizzasDeliveriesRevenueExpenses:Pizza ingredientsKitchen staffUtilitiesDelivery personDelivery vehicleEquipment depreciationRentMiscellaneousTotal expensesNet operating incomeActualResults1,840180$ 24,530$8,2905,9709154869984481,99082619,9234,607Milano PizzaFlexible Budget Performance ReportFor the Month Ended November 30FlexibleBudget$00PlanningBudget$00

Flexible budget is a budget that can be adjusted depending upon revenue and level of unit…

Milano Pizza has a small area for in-store dining as well as offers take-out and free home delivery services. The pizzeria's owner determined 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 Der Cost ner

Milano Pizza has a small area for in-store dining as well as offers take-out and free home delivery services. The pizzeria's owner determined 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 Der Cost ner

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter18: Pricing And Profitability Analysis

Section: Chapter Questions

Problem 1CE: Ventana Window and Wall Treatments Company provides draperies, shades, and various window...

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