Exercise 9-15 (Algo) Flexible Budgets and Revenue and Spending Varlances [LO9-1, LO9-2] Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Liter Fixed Element per Month Variable Element per Actual Total for June Revenue $ 32.00 $ 192,540 Raw materials $ 6.65 $ 41,930 Wages $ 7,600 $ 3.40 $ 28,100 Utilities $ 3,630 $ 2.20 $ 17,500 Rent $ 4,600 $ 4,600 Insurance $ 3,350 $ 3,350 Miscellaneous $ 850 $ 2.35 $ 15,190 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 $7,600 plus $3.40 per liter of gelato sold and the actual wages for June were $28,100. 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 varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values.) Revenue Via Gelato Revenue and Spending Variances Expenses For the Month Ended June 30 Raw materials Wages Utilities Rent Insurance Miscellaneous Total expense Net operating income
Exercise 9-15 (Algo) Flexible Budgets and Revenue and Spending Varlances [LO9-1, LO9-2] Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Liter Fixed Element per Month Variable Element per Actual Total for June Revenue $ 32.00 $ 192,540 Raw materials $ 6.65 $ 41,930 Wages $ 7,600 $ 3.40 $ 28,100 Utilities $ 3,630 $ 2.20 $ 17,500 Rent $ 4,600 $ 4,600 Insurance $ 3,350 $ 3,350 Miscellaneous $ 850 $ 2.35 $ 15,190 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 $7,600 plus $3.40 per liter of gelato sold and the actual wages for June were $28,100. 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 varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values.) Revenue Via Gelato Revenue and Spending Variances Expenses For the Month Ended June 30 Raw materials Wages Utilities Rent Insurance Miscellaneous Total expense Net operating income
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![Exercise 9-15 (Algo) Flexible Budgets and Revenue and Spending Variances [LO9-1, LO9-2]
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 Actual Total
Liter
for June
Revenue
$ 32.00
$ 192,540
Raw materials
$ 6.65
$ 41,930
Wages
$ 7,600
$ 3.40
$ 28,100
Utilities
$ 3,630
$ 2.20
$ 17,500
Rent
$ 4,600
$ 4,600
Insurance
Miscellaneous
$ 3,350
$ 850
$ 2.35
$ 3,350
$ 15,190
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 $7,600 plus $3.40 per liter of gelato sold and the actual wages for June were $28,100. 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 varlance by selecting "F" for favorable,
"U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.)
Revenue
Via Gelato
Revenue and Spending Variances
Expenses:
For the Month Ended June 30
Raw materials
Wages
Utilities
Rent
Insurance
Miscellaneous
Total expense
Net operating income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe5517470-03f1-4a32-9146-59ac82fbb2c1%2Fb2c907ec-6713-4b3d-a253-d2ff211d6979%2Fd2q74h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 9-15 (Algo) Flexible Budgets and Revenue and Spending Variances [LO9-1, LO9-2]
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 Actual Total
Liter
for June
Revenue
$ 32.00
$ 192,540
Raw materials
$ 6.65
$ 41,930
Wages
$ 7,600
$ 3.40
$ 28,100
Utilities
$ 3,630
$ 2.20
$ 17,500
Rent
$ 4,600
$ 4,600
Insurance
Miscellaneous
$ 3,350
$ 850
$ 2.35
$ 3,350
$ 15,190
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 $7,600 plus $3.40 per liter of gelato sold and the actual wages for June were $28,100. 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 varlance by selecting "F" for favorable,
"U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.)
Revenue
Via Gelato
Revenue and Spending Variances
Expenses:
For the Month Ended June 30
Raw materials
Wages
Utilities
Rent
Insurance
Miscellaneous
Total expense
Net operating income
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