accounting question 428229
Aug 29, 2021 | Uncategorized
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Verona Pizza is a small neighborhood pizzeria that has a small area for in store dining as well offering takeout 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:
|
Fixed Cost
per Month |
Cost per
Pizza |
Cost per
Delivery |
| Pizza ingredients |
|
|
$ |
4.20 |
|
|
| Kitchen staff |
$ |
5,870 |
|
|
|
|
| Utilities |
$ |
590 |
$ |
0.10 |
|
|
| Delivery person |
|
|
|
|
$ |
2.90 |
| Delivery vehicle |
$ |
610 |
|
|
$ |
1.30 |
| Equipment depreciation |
$ |
384 |
|
|
|
|
| Rent |
$ |
1,790 |
|
|
|
|
| Miscellaneous |
$ |
710 |
$ |
0.05 |
|
|
|
|
| In October, the pizzeria budgeted for 1,500 pizzas at an average selling price of $13.00 per pizza and for 200 deliveries. |
Data concerning the pizzeria’s operations in October appear below:
|
Actual
Results |
| Pizzas |
|
1,600 |
| Deliveries |
|
180 |
| Revenue |
$ |
21,340 |
| Pizza ingredients |
$ |
6,850 |
| Kitchen staff |
$ |
5,810 |
| Utilities |
$ |
875 |
| Delivery person |
$ |
522 |
| Delivery vehicle |
$ |
982 |
| Equipment depreciation |
$ |
384 |
| Rent |
$ |
1,790 |
| Miscellaneous |
$ |
778 |
|
|
|
| 1. |
Complete the flexible budget performance report that shows both activity variances and revenue and spending variances for the pizzeria for October. (Input all amounts as positive values. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.)
Verona Pizza
Flexible Budget Performance Report
For the Month Ended October 31 |
|
Activity Variances |
Revenue and Spending Variances |
| Revenue |
$ |
(Click to select)FUNone |
$ |
(Click to select)FUNone |
|
|
|
|
|
| Expenses: |
|
|
|
|
| Pizza ingredients |
|
(Click to select)FUNone |
|
(Click to select)FUNone |
| Kitchen staff |
|
(Click to select)FUNone |
|
(Click to select)FUNone |
| Utilities |
|
(Click to select)FUNone |
|
(Click to select)FUNone |
| Delivery person |
|
(Click to select)FUNone |
|
(Click to select)FUNone |
| Delivery vehicle |
|
(Click to select)FUNone |
|
(Click to select)FUNone |
| Equipment depreciation |
|
(Click to select)FUNone |
|
(Click to select)FUNone |
| Rent |
|
(Click to select)FUNone |
|
(Click to select)FUNone |
| Miscellaneous |
|
(Click to select)FUNone |
|
(Click to select)FUNone |
|
|
|
|
|
| Total expense |
|
(Click to select)FUNone |
|
(Click to select)FUNone |
|
|
|
|
|
| Net operating income |
$ |
(Click to select)FUNone |
$ |
(Click to select)FUNone |
|
|
|
|
|
|
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