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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 pizzerias owner has determined that the shop has two major cost driversthe number of pizzas sold and the number of deliveries made.

The pizzerias cost formulas appear below:

	Fixed Cost per Month			Cost per Pizza			Cost per Delivery
Pizza ingredients				$	4.00
Kitchen staff	$	6,050
Utilities	$	680		$	1.00
Delivery person							$	2.80
Delivery vehicle	$	700					$	2.20
Equipment depreciation	$	456
Rent	$	2,010
Miscellaneous	$	800		$	0.20

In November, the pizzeria budgeted for 1,770 pizzas at an average selling price of $14 per pizza and for 210 deliveries.

Data concerning the pizzerias actual results in November appear below:

	Actual Results
Pizzas		1,870
Deliveries		190
Revenue	$	26,800
Pizza ingredients	$	8,470
Kitchen staff	$	5,990
Utilities	$	920
Delivery person	$	532
Delivery vehicle	$	1,000
Equipment depreciation	$	456
Rent	$	2,010
Miscellaneous	$	832

Required:

1. Complete the flexible budget performance report that shows both revenue and spending variances and activity 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 Flexible Budget Performance Report For the Month Ended November 30 Actual Results Revenue and Spending Variances Flexible Budget Planning Budget Activity Variances 1,870 190 1,770 210 Pizzas 1,870 Deliveries 190 Revenue $ 26,800 Expenses Pizza ingredients Kitchen staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous 8,470 5,990 920 532 1,000 456 2,010 832 20,210 $6,590 Total expense Net operating income

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