Exercise 9-15 (Algo) Flexible Budgets and Revenue and Spending Variances [LO9-1, LO9-3] Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Fixed Element per Month Variable Element per Liter Actual Total for June $ 72,540 Revenue $ 13.00 Raw materials $ 4.75 $ 30,330 Wages $ 5,700 $ 1.50 $ 14,560 Utilities $ 1,730 $ 0.30 $ 3,800 Rent $ 2,700 $ 2,700 Insurance $ 1,450 $ 1,450 Miscellaneous $ 660 0.45 $ 2,990 While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example, wages should be $5,700 plus $1.50 per liter of gelato sold and the actual wages for June were $14,560. Via Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters. Required: Calculate Via Gelato revenue and spending variances for June. (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.) Via Gelato Revenue and Spending Variances For the Month Ended June 30 Revenue Expenses: Raw materials Wages Utilities Rent Insurance Miscellaneous Total expense Net operating income 2 บ F ป 0 None 0 None IF U U
Exercise 9-15 (Algo) Flexible Budgets and Revenue and Spending Variances [LO9-1, LO9-3] Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Fixed Element per Month Variable Element per Liter Actual Total for June $ 72,540 Revenue $ 13.00 Raw materials $ 4.75 $ 30,330 Wages $ 5,700 $ 1.50 $ 14,560 Utilities $ 1,730 $ 0.30 $ 3,800 Rent $ 2,700 $ 2,700 Insurance $ 1,450 $ 1,450 Miscellaneous $ 660 0.45 $ 2,990 While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example, wages should be $5,700 plus $1.50 per liter of gelato sold and the actual wages for June were $14,560. Via Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters. Required: Calculate Via Gelato revenue and spending variances for June. (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.) Via Gelato Revenue and Spending Variances For the Month Ended June 30 Revenue Expenses: Raw materials Wages Utilities Rent Insurance Miscellaneous Total expense Net operating income 2 บ F ป 0 None 0 None IF U U
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 9-15 (Algo) Flexible Budgets and Revenue and Spending Variances [LO9-1, LO9-3]
Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual
results for the month of June:
Fixed
Element
per Month
Variable
Element per
Liter
Actual
Total for
June
$ 72,540
Revenue
$ 13.00
Raw materials
$ 4.75
$ 30,330
Wages
$ 5,700
$ 1.50
$ 14,560
Utilities
$ 1,730
$ 0.30
$ 3,800
Rent
$ 2,700
$ 2,700
Insurance
$ 1,450
$ 1,450
Miscellaneous
$ 660
0.45
$ 2,990
While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold.
For example, wages should be $5,700 plus $1.50 per liter of gelato sold and the actual wages for June were $14,560. Via
Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters.
Required:
Calculate Via Gelato revenue and spending variances for June. (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.)
Via Gelato
Revenue and Spending Variances
For the Month Ended June 30
Revenue
Expenses:
Raw materials
Wages
Utilities
Rent
Insurance
Miscellaneous
Total expense
Net operating income
2
บ
F
ป
0 None
0 None
IF
U
U](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6bc04e3e-1c34-4746-a712-1a0ca83f5292%2Fded0dec8-2790-416b-967f-f81d7851dcc7%2Fen6jjtc_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 9-15 (Algo) Flexible Budgets and Revenue and Spending Variances [LO9-1, LO9-3]
Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual
results for the month of June:
Fixed
Element
per Month
Variable
Element per
Liter
Actual
Total for
June
$ 72,540
Revenue
$ 13.00
Raw materials
$ 4.75
$ 30,330
Wages
$ 5,700
$ 1.50
$ 14,560
Utilities
$ 1,730
$ 0.30
$ 3,800
Rent
$ 2,700
$ 2,700
Insurance
$ 1,450
$ 1,450
Miscellaneous
$ 660
0.45
$ 2,990
While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold.
For example, wages should be $5,700 plus $1.50 per liter of gelato sold and the actual wages for June were $14,560. Via
Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters.
Required:
Calculate Via Gelato revenue and spending variances for June. (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.)
Via Gelato
Revenue and Spending Variances
For the Month Ended June 30
Revenue
Expenses:
Raw materials
Wages
Utilities
Rent
Insurance
Miscellaneous
Total expense
Net operating income
2
บ
F
ป
0 None
0 None
IF
U
U
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