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1. Milano Pizza is a small pizzeria that has a small area for in-store dining...

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Accounting

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1. Milano Pizza is a small 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 number of pizzas sold and number of deliveries made. Data concerning the pizzeria's costs appear below: Fixed Cost / Month Cost / Pizza $3.80 Cost/Delivery $5,220 $630 $0.05 Pizza Ingredients Kitchen Staff Utilities Delivery Person Delivery Vehicle Equipment Depreciation Rent Miscellaneous $3.50 $1.50 $540 $275 $1,830 $820 $0.15 In November, the pizzeria budgeted for 1,200 pizzas at an average selling price of $13.50 per pizza and for 180 deliveries. Data concerning the pizzeria's operations in November appear below: Pizzas Deliveries Revenue Pizza Ingredients Kitchen Staff Utilities Delivery Person Delivery Vehicle Equipment Depreciation Rent Miscellaneous Actual Results 1,240 174 $17,420 $4,985 $5,281 $984 $609 $655 $275 $1,830 $954 Required: Compute the activity, revenue, and spending variances for each item and in total for November. Do not forget to mark favorable or unfavorable for each item. (It may help to create standard and flexible budgets and actual results side by side) 1

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