H9 QUIZ Help Sav 3 Milano Pizza is a small neighborhood pizzerla that has a smal
ID: 2432531 • Letter: H
Question
H9 QUIZ Help Sav 3 Milano Pizza is a small neighborhood pizzerla that has a small area for in-store dining as well as offering take-out 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 de made. The pizzeria's cost formulas appear below: Month Pizzs Delivery s 4.40 Dtilities Delivery person Delivery vehicle 6100.30 $ 630 $1.50 $1,870 $ 730 Rent In November, the pizzeria budgeted for 1,560 pizzas at an average selling price of $15 per pizza and for 220 deliveries. Data concerning the pizzeria's actual results in November appear below Results 1,660 200 s 25,450 7,210 Pizza ingredients Kitchen 8taff veilities $620 $ 986 S400 Equipment depreciation SPrex 3 Nest >Explanation / Answer
Actual Revenue and spending variances Flexible budget Activity variances Planning budget Pizzas 1660 1660 1560 Deliveries 200 200 220 Revenue 25450 550 F 24900 1500 F 23400 Expenses: Pizza ingredient 7210 94 F 7304 440 U 6864 Kitchen staff 5850 60 F 5910 0 None 5910 Utilities 885 223 F 1108 30 U 1078 Delivery person 620 0 None 620 62 F 682 Delivery vehicle 986 56 U 930 30 F 960 Equipment depreciation 400 0 None 400 0 None 400 Rent 1870 0 None 1870 0 None 1870 Miscellaneous 790 189 F 979 15 U 964 Total expense 18611 510 F 19121 393 U 18728 Net operating income 6839 1060 F 5779 1107 F 4672
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