Lubin School of Business ACC 204-CRN 20812 Department of Accounting Mark A. Toro
ID: 2518370 • Letter: L
Question
Lubin School of Business ACC 204-CRN 20812 Department of Accounting Mark A. Torossian, CPA Mlano Pizza is a small neighborhood pizzena 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 pizzerna's cost fonmulas appear below Faxed Cost Cost per Cost per Month Pizza Delivery Pizza $ 4 50 Kitchen sta Ut?ties 840$060 $ 860 s 2.330 Delivery person Delivery vehicle s 340 s 150 Rent s 960 $010 In November, the pizzeria budgeted for 2.250 pizzas at an average selling price of $22 per pizza and for 210 deliveries Data ng the pizzeria's actual resuits in November appear below Actual Results 2.350 190 52 480 5 11.350 310 1,000 Equiprnernt depreciation s Required 1 Complete the flexible budget performance report that shows both revenue variances and activity variances for the pizzeri a for November. (Indicate the effect of each variance by using "F.. for favorable, ..U'. for unfavorable, and "None" for no ottectQ.e" zero variance)Explanation / Answer
Planning budget 2,250 210 cost Cost per amount fixed cost per pizza Delvery pizza ingredients 4.5 10125 Kitchen staff 6,370 6,370 Utilities 840 0.6 2190 Delivery person 3.4 714 delivery vehicle 860 1.5 1175 Equipment depreciation 584 584 Rent 2,330 2,330 Miscellaneous 960 0.1 1185 24673 Flexible budget 2,350 190 cost Cost per amount fixed cost per pizza Delvery pizza ingredients 4.5 10575 Kitchen staff 6,370 6,370 Utilities 840 0.6 2250 Delivery person 3.4 646 delivery vehicle 860 1.5 1145 Equipment depreciation 584 584 Rent 2,330 2,330 Miscellaneous 960 0.1 1195 25095 Flexible Budget Performance Report Actual results Revenue & spending Flexible Activity variance Planning Variaance budget Budget Pizzas 2,350 2,350 2,250 Deliveries 190 190 210 Revenue 52,480 780 F 51700 2200 F 49500 Expenses: pizza ingredients 11,350 775 U 10575 450 U 10125 Kitchen staff 6,310 60 F 6,370 0 N 6,370 Utilities 1,000 1,250 F 2250 60 U 2190 Delivery person 646 0 N 646 68 F 714 delivery vehicle 1,032 113 F 1145 30 F 1175 Equipment depreciation 584 0 N 584 0 N 584 Rent 2,330 0 N 2,330 0 N 2,330 Miscellaneous 928 267 F 1195 10 U 1185 total expense 24,180 915 F 25095 422 U 24673 net operating income 28,300 1,695 F 26605 1778 F 24827
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.