Homework Help is Here – Start Your Trial Now!
Business
Accounting
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.) Pizzas Deliveries Revenue Milano Pizza Revenue and Spending Variances For the Month Ended November 30 Actual Results Revenue and Spending Variances Flexible Budget 1,690 210 $ 27,600 Expenses: Pizza ingredients Kitchen staff 7,390 5,870 Utilities 890 Delivery person 672 Delivery vehicle 988 Equipment depreciation 408 Rent Miscellaneous 1,890 796 Total expense 18,904 Net operating income $ 8,696 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 Cost per Month Pizza $ 4.50 Cost per Delivery Pizza ingredients Kitchen staff $ 5,930 Utilities $ 620 $ 0.40 Delivery person Delivery vehicle $ 640 $ 3.20 $ 1.60 Equipment depreciation. $ 408 $ 1,890 $ 740 $ 0.20 Rent Miscellaneous In November, the pizzeria budgeted for 1,590 pizzas at an average selling price of $16 per pizza and for 230 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Results 1,690 Pizzas Deliveries Revenue 210 $ 27,600 Pizza ingredients $ 7,390 Kitchen staff $ 5,870 Utilities Delivery person $ 890 $ 672 Delivery vehicle Equipment depreciation. Rent Miscellaneous $ 988 $ 408 $ 1,890 $ 796

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.) Pizzas Deliveries Revenue Milano Pizza Revenue and Spending Variances For the Month Ended November 30 Actual Results Revenue and Spending Variances Flexible Budget 1,690 210 $ 27,600 Expenses: Pizza ingredients Kitchen staff 7,390 5,870 Utilities 890 Delivery person 672 Delivery vehicle 988 Equipment depreciation 408 Rent Miscellaneous 1,890 796 Total expense 18,904 Net operating income $ 8,696 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 Cost per Month Pizza $ 4.50 Cost per Delivery Pizza ingredients Kitchen staff $ 5,930 Utilities $ 620 $ 0.40 Delivery person Delivery vehicle $ 640 $ 3.20 $ 1.60 Equipment depreciation. $ 408 $ 1,890 $ 740 $ 0.20 Rent Miscellaneous In November, the pizzeria budgeted for 1,590 pizzas at an average selling price of $16 per pizza and for 230 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Results 1,690 Pizzas Deliveries Revenue 210 $ 27,600 Pizza ingredients $ 7,390 Kitchen staff $ 5,870 Utilities Delivery person $ 890 $ 672 Delivery vehicle Equipment depreciation. Rent Miscellaneous $ 988 $ 408 $ 1,890 $ 796

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Please help
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.) Pizzas Deliveries Revenue Milano Pizza Revenue and Spending Variances For the Month Ended November 30 Actual Results Revenue and Spending Variances Flexible Budget 1,690 210 $ 27,600 Expenses: Pizza ingredients Kitchen staff 7,390 5,870 Utilities 890 Delivery person 672 Delivery vehicle 988 Equipment depreciation 408 Rent Miscellaneous 1,890 796 Total expense 18,904 Net operating income $ 8,696
Transcribed Image Text: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.) Pizzas Deliveries Revenue Milano Pizza Revenue and Spending Variances For the Month Ended November 30 Actual Results Revenue and Spending Variances Flexible Budget 1,690 210 $ 27,600 Expenses: Pizza ingredients Kitchen staff 7,390 5,870 Utilities 890 Delivery person 672 Delivery vehicle 988 Equipment depreciation 408 Rent Miscellaneous 1,890 796 Total expense 18,904 Net operating income $ 8,696
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 Cost per Month Pizza $ 4.50 Cost per Delivery Pizza ingredients Kitchen staff $ 5,930 Utilities $ 620 $ 0.40 Delivery person Delivery vehicle $ 640 $ 3.20 $ 1.60 Equipment depreciation. $ 408 $ 1,890 $ 740 $ 0.20 Rent Miscellaneous In November, the pizzeria budgeted for 1,590 pizzas at an average selling price of $16 per pizza and for 230 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Results 1,690 Pizzas Deliveries Revenue 210 $ 27,600 Pizza ingredients $ 7,390 Kitchen staff $ 5,870 Utilities Delivery person $ 890 $ 672 Delivery vehicle Equipment depreciation. Rent Miscellaneous $ 988 $ 408 $ 1,890 $ 796
Transcribed Image Text: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 Cost per Month Pizza $ 4.50 Cost per Delivery Pizza ingredients Kitchen staff $ 5,930 Utilities $ 620 $ 0.40 Delivery person Delivery vehicle $ 640 $ 3.20 $ 1.60 Equipment depreciation. $ 408 $ 1,890 $ 740 $ 0.20 Rent Miscellaneous In November, the pizzeria budgeted for 1,590 pizzas at an average selling price of $16 per pizza and for 230 deliveries. Data concerning the pizzeria's actual results in November appear below: Actual Results 1,690 Pizzas Deliveries Revenue 210 $ 27,600 Pizza ingredients $ 7,390 Kitchen staff $ 5,870 Utilities Delivery person $ 890 $ 672 Delivery vehicle Equipment depreciation. Rent Miscellaneous $ 988 $ 408 $ 1,890 $ 796
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS