Via GelatoRevenue and Spending VariancesFor the Month Ended June 30RevenueExpenses:Raw materialsWagesUtilitiesRentInsuranceMiscellaneousTotal expenseNet operating income Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for themonth of June:FixedVariableElement per Actual TotalLiterElementper Monthfor June$ 31.00$ 6.55$ 3.30$ 2.10$ 191,540$ 42,830$ 28,000$ 17,400$ 4,500$ 3,250$ 14,690RevenueRaw materials$ 7,500$ 3,530$ 4,500$ 3,250$ 840WagesUtilitiesRentInsuranceMiscellaneous$ 2.25While 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 $7,500 plus $3.30 per liter of gelato sold and the actual wages for June were $28,000. Via Gelato expected to sell6,200 liters in June, but actually sold 6,400 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.)

Variance refers to those deviation which is used to determine the difference between the actual…

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.)

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.)

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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