s Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the onth of June: Fixed Element per Month Revenue Raw materials lages Utilities Rent $ 6,100 $ 2,130 $ 3,100 $ 1,85e 7e0 Variable Element per Liter $ 17.ee $ 5.15 $ 1.90 $ e.70 Actual Total for June $ 99,540 $ 32,730 $ 17,900 $ 7,800 $ 3,100 1,850 $ 5,8ee Insurance iscellaneous $ e.85 nile 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. ges should be $6.100 plus $1.90 per liter of gelato sold and the actual wages for June were $17,900. Via Gelato expected to sell 00 iters in June, but actually sold 6.300 liters. quired: ilculate Via Gelato revenue and spending variances for June. (Indicate the effect of each varlance by selecting "F" for favorable, " for unfavorable, and "None" for no etfect (L.e., zero varlance). Input all amounts as positive values.) Via Gelato Revenue and Spending Variances For the Month Ended June 30 evenue xpenses Raw materials Wages Utilities Rent Insurance Miscellaneous otal expense et operating income
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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