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Cost per Cost per 6,110 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 driversthe number of pizzas sold and the number of deliveries made. The pizzeria's cost formulas appear below: Fixed Cost per Month Pizza Delivery Pizza ingredients $ 4.60 Kitchen staff $ 6,170 Utilities S 740 $ 0.60 Delivery person $ 3.40 Delivery vehicle $ 760 $ 1.60 Equipment depreciation $ 504 Rent $ 2,130 Miscellaneous S 860 $ 0.20 In November, the pizzeria budgeted for 1,950 pizzas at an average selling price of $20 per pizza and for 190 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Results Pizzas 2,050 Deliveries 170 Revenue $ 41,680 Pizza ingredients 9,550 Kitchen staff Utilities 950 Delivery person 578 Delivery vehicle 1,012 Equipment depreciation $ 504 Rent $ 2,130 Miscellaneous $ 868 Required: 1. Compute the revenue and spending 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.) Required: 1. Compute the revenue and spending 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.) Milano Pizza Revenue and Spending Variances For the Month Ended November 30 Actual Revenue and Spending Results Variances 2,050 Flexible Budget Pizzas Deliveries 170 $ 41.680 Revenue Expenses: Pizza ingredients Kitchen staff 9,550 6.110 Utilities 950 Delivery person 578 1,012 Delivery vehicle Equipment depreciation Rent 504 2,130 Miscellaneous 868 Total expense Net operating income 21,702 19,978

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