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Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Revenue Expenses: Fixed Element per Month $ 1.35 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 $6,600 plus $2.40 per liter of gelato sold and the actual wages for June were $21,000. Via Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters. Raw materials $ 6,600 $ 2,630 $ 3,600 $ 2,350 $ 750 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 Wages Utilities Rent Insurance Miscellaneous Variable Element per Liter $ 22.00 $ 5.65 $ 2.40 $ 1.20 Total expense Net operating income Actual Total for June $ 130,540 $ 35,930 $ 21,000 $ 10,500 $3,600 $ 2,350 $ 8,590

Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Revenue Expenses: Fixed Element per Month $ 1.35 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 $6,600 plus $2.40 per liter of gelato sold and the actual wages for June were $21,000. Via Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters. Raw materials $ 6,600 $ 2,630 $ 3,600 $ 2,350 $ 750 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 Wages Utilities Rent Insurance Miscellaneous Variable Element per Liter $ 22.00 $ 5.65 $ 2.40 $ 1.20 Total expense Net operating income Actual Total for June $ 130,540 $ 35,930 $ 21,000 $ 10,500 $3,600 $ 2,350 $ 8,590

FINANCIAL ACCOUNTING
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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Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Revenue Expenses: Fixed Element Raw materials Wages Utilities Rent Insurance Miscellaneous Variable Element per Month per Liter $22.00 $6,600 $ 2,630 $3,600 $ 2,350 $ 750 Total expense Net operating income $ 5.65 $ 2.40 $ 1.20 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 $6,600 plus $2.40 per liter of gelato sold and the actual wages for June were $21,000. Via Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters. Via Gelato Revenue and Spending Variances For the Month Ended June 30 $ 1.35 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.) Actual Total for June $ 130,540 $ 35,930 $ 21,000 $ 10,500 $ 3,600 $ 2,350 $ 8,590
Transcribed Image Text:Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Revenue Expenses: Fixed Element Raw materials Wages Utilities Rent Insurance Miscellaneous Variable Element per Month per Liter $22.00 $6,600 $ 2,630 $3,600 $ 2,350 $ 750 Total expense Net operating income $ 5.65 $ 2.40 $ 1.20 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 $6,600 plus $2.40 per liter of gelato sold and the actual wages for June were $21,000. Via Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters. Via Gelato Revenue and Spending Variances For the Month Ended June 30 $ 1.35 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.) Actual Total for June $ 130,540 $ 35,930 $ 21,000 $ 10,500 $ 3,600 $ 2,350 $ 8,590
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