Business, 07.06.2021 03:10 bellajuliet13

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 Cost per Cost per
per Month Pizza Delivery
Pizza ingredients $5.00
Kitchen staff $6,030
Utilities $670 $0.90
Delivery person $2.70
Delivery vehicle $690 $2.10
Equipment depreciation $448
Rent $1,990
Miscellaneous $790 $0.15
In November, the pizzeria budgeted for 1,740 pizzas at an average selling price of $13 per pizza and for 200 deliveries. Data concerning the pizzeria’s actual results in November appear below:
Actual Results
Pizzas 1,840
Deliveries 180
Revenue $24,530
Pizza ingredients 8,290
Kitchen staff $5,970
Utilities $915
Delivery person $486
Delivery vehicle $998
Equipment
depreciation $448
Rent $1,990
Miscellaneous $826
Required:
Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November.

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Answer from: Kelshonti15

Milano Pizza

Flexible Budget Performance Report for November

Static Flexible Actual Variances

Budget Budget Results Spending Activity

Sales Revenue $22,620 $23,920 $24,530 $610 F $1,300 F

Pizza ingredients $8,700 $9,200 $8,290 $910 F $500 U

Kitchen staff 6,030 $6,030 5,970 60 F 0 N

Utilities 2,236 $2,326 915 1,411 F 90 U

Delivery person 540 $486 486 0 N 54 F

Delivery vehicle 1,110 $1,068 998 70 F 42 F

Equipment depreciation 448 $448 448 0 N 0 N

Rent 1,990 $1,990 1,990 0 N 0 N

Miscellaneous 1,051 $1,066 826 240 F 15 U

Total expenses $22,105 $22,614 $19,923 $2,691 F $509 U

Explanation:

a) Data and Calculations:

Pizzeria's Cost Formulas:

Fixed Cost Cost per Cost per Static

per Month Pizza Delivery Budget

Pizza ingredients $5.00 $8,700

Kitchen staff $6,030 6,030

Utilities $670 $0.90 2,236

Delivery person $2.70 540

Delivery vehicle $690 $2.10 1,110

Equipment depreciation $448 448

Rent $1,990 1,990

Miscellaneous $790 $0.15 1,051

Budgeted pizzas for November = 1,740

Average selling price per pizza = $13

Average deliveries for the month = 200

Sales revenue = $23,920 (1,840 * $13)

Flexing the budget:

Fixed Cost Cost per Cost per Flexible

per Month Pizza Delivery Budget

Pizza ingredients ($5.00 * 1,840) $9,200

Kitchen staff $6,030 6,030

Utilities $670 ($0.90 * 1,840) 2,326

Delivery person $2.70*180 486

Delivery vehicle $690 $2.10*180 1,068

Equipment depreciation $448 448

Rent $1,990 1,990

Miscellaneous $790 ($0.15*1,840) 1,066

Actual results in November:

Pizzas 1,840

Deliveries 180

Revenue $24,530

Pizza ingredients 8,290

Kitchen staff $5,970

Utilities $915

Delivery person $486

Delivery vehicle $998

Equipment depreciation $448

Rent $1,990

Miscellaneous $826

Answer from: Quest

answer; i believe that the correct answer is (supply chain);

Answer from: Quest

c is the correct answer.

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