Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 11 Aug 2017 My Price 13.00

Verona Pizza

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%u2019s owner has determined that the shop has two major cost drivers%u2014the number of pizzas sold and the number of deliveries made. Data concerning the pizzeria%u2019s costs appear below:

 

  Fixed Cost
per Month		 Cost per
Pizza		 Cost per
Delivery
Pizza ingredients     $ 4.10  
Kitchen staff $ 6,000    
Utilities $ 580 $ .10  
Delivery person       $ 2.70
Delivery vehicle $ 690   $ 1.50
Equipment depreciation $ 382    
Rent $ 1,770    
Miscellaneous $ 710 $ .01  

 

In October, the pizzeria budgeted for 1,400 pizzas at an average selling price of $12.00 per pizza and for 240 deliveries.
Data concerning the pizzeria%u2019s operations in October appear below:

 

  Actual
Results
Pizzas   1,500
Deliveries   220
Revenue $ 18,640
Pizza ingredients $ 6,290
Kitchen staff $ 5,940
Utilities $ 855
Delivery person $ 594
Delivery vehicle $ 1,162
Equipment depreciation $ 382
Rent $ 1,770
Miscellaneous $ 717

 

Required:
1.

Compute the 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).)
Verona Pizza
Revenue and Spending Variances
For the Month Ended October 31
  Flexible
Budget		 Actual
Results		 Revenue and Spending
Variances
Revenue $ $ $ (Click to select) None F U
 
 
Expenses:        
Pizza ingredients       (Click to select) F U None
Kitchen staff       (Click to select) F U None
Utilities       (Click to select) F U None
Delivery person       (Click to select) F U None
Delivery vehicle       (Click to select) F U None
Equipment depreciation       (Click to select) F U None
Rent       (Click to select) F U None
Miscellaneous       (Click to select) F U None
 
 
Total expense       (Click to select) F U None
 
 
Net operating income $ $ $ (Click to select) F U None

 

Answers

Maurice Tutor
(5)
Status NEW Posted 11 Aug 2017 06:08 PM My Price 13.00

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