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.

The pizzeria’s cost formulas appear below:

	Fixed Cost per Month			Cost per Pizza			Cost per Delivery
Pizza ingredients				$	4.30
Kitchen staff	$	5,890
Utilities	$	600		$	0.20
Delivery person							$	3.00
Delivery vehicle	$	620					$	1.40
Equipment depreciation	$	392
Rent	$	1,850
Miscellaneous	$	720		$	0.10

  

In November, the pizzeria budgeted for 1,530 pizzas at anaverage selling price of $14 per pizza and for 210 deliveries.

Data concerning the pizzeria’s actual results in November appearbelow:

  

	Actual Results
Pizzas		1,630
Deliveries		190
Revenue	$	23,360
Pizza ingredients	$	7,030
Kitchen staff	$	5,830
Utilities	$	880
Delivery person	$	570
Delivery vehicle	$	984
Equipment depreciation	$	392
Rent	$	1,850
Miscellaneous	$	784

Required:

1. Compute the revenue and spending variances for the pizzeriafor November. (Indicate the effect of each variance byselecting "F" for favorable, "U" for unfavorable, and "None" for noeffect (i.e., zero variance). Input all amounts as positivevalues.)

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