Business, 05.05.2020 05:01 jaasminfloress

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. The pizzeria’s cost formulas appear below: Fixed Cost per Month Cost per Pizza Cost per Delivery Pizza ingredients $ 3.80 Kitchen staff $ 5,220 Utilities $ 630 $ 0.05 Delivery person $ 3.50 Delivery vehicle $ 540 $ 1.50 Equipment depreciation $ 275 Rent $ 1,830 Miscellaneous $ 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. Data concerning the pizzeria’s actual results in November appear below: Actual Results Pizzas 1,240 Deliveries 174 Revenue $ 17,420 Pizza ingredients $ 4,985 Kitchen staff $ 5,281 Utilities $ 984 Delivery person $ 609 Delivery vehicle $ 655 Equipment depreciation $ 275 Rent $ 1,830 Miscellaneous $ 954 Required: 1. Compute the revenue and spending 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.)

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