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Variance Analysis using Revenue/Spending and Activity Variances (part of Master Budget Extra Credit) ...

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Accounting

Variance Analysis using Revenue/Spending and Activity Variances (part of Master Budget Extra Credit)

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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 pizzeria's owner has determined that the shop has two major cost drivers-the number of pizzas sold and the number of deliveries made. Data concerning the pizzeria's costs appear below Cost per Dellvery Fixed Cost Cost per Pizza %3.80 per Month $5,220 $630 $0.05 Utilities.. . . Dellvery person Dellvery vehicle Equlpment depreclation. $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

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