per Month Liter Revenue $ 21.00 June $ 133,540 Raw materials $ 5.55 $ 37,130 Wages $ 6,500 $ 2.30 $ 21,300 Utilities $ 2,530 $ 1.10 $ 10,000 Rent $ 3,500 $ 3,500 Insurance $ 2,250 $ 2,250 Miscellaneous $ 740 1.25 $ 8,790 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 $6,500 plus $2.30 per liter of gelato sold and the actual wages for June were $21,300. Via Gelato expected to sell 6,400 liters in June but actually sold 6,600 liters. Required: Calculate Via Gelato's revenue and spending variances for June. Note: 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. Answer is not complete. Via Gelato Revenue and Spending Variances For the Month Ended June 30 Revenue Expenses: Raw materials Wages Utilities Rent Insurance Miscellaneous Total expenses Net operating income $ 5,060 U 500 U 380 F 210 U 0 None 0 None 200 F U U

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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per Month
Liter
Revenue
$ 21.00
Raw materials
$ 5.55
June
$ 133,540
$ 37,130
Wages
$ 6,500
$ 2.30
$ 21,300
Utilities
$ 2,530
$ 1.10
$ 10,000
Rent
$ 3,500
$ 3,500
Insurance
$ 2,250
$ 2,250
Miscellaneous
$ 740
1.25
$ 8,790
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 $6,500 plus $2.30 per liter of gelato sold and the actual wages for June were $21,300. Via Gelato expected to sell
6,400 liters in June but actually sold 6,600 liters.
Required:
Calculate Via Gelato's revenue and spending variances for June.
Note: 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.
× Answer is not complete.
Via Gelato
Revenue and Spending Variances
For the Month Ended June 30
Revenue
Expenses:
Raw materials
Wages
Utilities
Rent
Insurance
Miscellaneous
Total expenses
Net operating income
$
5,060
U
500
U
380
F
210
U
0
None
0
None
200
F
U
U
Transcribed Image Text:per Month Liter Revenue $ 21.00 Raw materials $ 5.55 June $ 133,540 $ 37,130 Wages $ 6,500 $ 2.30 $ 21,300 Utilities $ 2,530 $ 1.10 $ 10,000 Rent $ 3,500 $ 3,500 Insurance $ 2,250 $ 2,250 Miscellaneous $ 740 1.25 $ 8,790 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 $6,500 plus $2.30 per liter of gelato sold and the actual wages for June were $21,300. Via Gelato expected to sell 6,400 liters in June but actually sold 6,600 liters. Required: Calculate Via Gelato's revenue and spending variances for June. Note: 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. × Answer is not complete. Via Gelato Revenue and Spending Variances For the Month Ended June 30 Revenue Expenses: Raw materials Wages Utilities Rent Insurance Miscellaneous Total expenses Net operating income $ 5,060 U 500 U 380 F 210 U 0 None 0 None 200 F U U
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