Milano Pizza is a small neighborhood pizzeria that has a smallarea for in-store dining as well as offering take-out and free homedelivery services. The pizzeria’s owner has determined that theshop has two major cost drivers—the number of pizzas sold and thenumber of deliveries made.

Data concerning the pizzeria’s costs appear below:

	Fixed Cost per Month			Cost per Pizza			Cost per Delivery
Pizza ingredients				$	4.80
Kitchen staff	$	5,990
Utilities	$	650		$	.70
Delivery person							$	3.50
Delivery vehicle	$	670					$	1.90
Equipment depreciation	$	432
Rent	$	1,950
Miscellaneous	$	770		$	.10

    

In November, the pizzeria budgeted for 1,680 pizzas at anaverage selling price of $19 per pizza and for 180 deliveries.

Data concerning the pizzeria’s operations in November appearbelow:

  

	Actual Results
Pizzas		1,780
Deliveries		160
Revenue	$	34,410
Pizza ingredients	$	7,930
Kitchen staff	$	5,930
Utilities	$	905
Delivery person	$	560
Delivery vehicle	$	994
Equipment depreciation	$	432
Rent	$	1,950
Miscellaneous	$	814

Required:

1. Complete the flexible budget performancereport that shows both revenue and spending variances and activityvariances for the pizzeria for November. (Indicate theeffect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e., zero variance). Inputall amounts as positive values.

Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Actual Results Revenue and Spending Variances Flexible Budget Activity Variances Planning Budget Revenue $34,410 Expenses: Pizza ingredients 7,930 Kitchen staff 5,930 Utilities 905 Delivery person 560 Delivery vehicle 994 Equipment depreciation 432 Rent 1,950 Miscellaneous 814 Total expense 19,515 Net operating income $14,895