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unfavorable, and Answer is complete but not entirely correct. Via Gelato Revenue and Spending Variances For the Month Ended June 30 $7,160✔ U Revenue Expenses: Raw materials Wages Utilities Rent Insurance Miscellaneous Total expense Net operating income $ for no effect (i.e., zero variance). Input all amounts as po 0X U F U 430 800 0 0 745 None None F 0X U 0X U

unfavorable, and Answer is complete but not entirely correct. Via Gelato Revenue and Spending Variances For the Month Ended June 30 $7,160✔ U Revenue Expenses: Raw materials Wages Utilities Rent Insurance Miscellaneous Total expense Net operating income $ for no effect (i.e., zero variance). Input all amounts as po 0X U F U 430 800 0 0 745 None None F 0X U 0X U

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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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.) X Answer is complete but not entirely correct. Via Gelato Revenue and Spending Variances For the Month Ended June 30 $7,160 Revenue Expenses: Raw materials Wages Utilities Rent Insurance Miscellaneous Total expense Net operating income $ 0X U 430 F 800 U 0 0 745 None None F 0X U 0 U
Transcribed Image Text: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.) X Answer is complete but not entirely correct. Via Gelato Revenue and Spending Variances For the Month Ended June 30 $7,160 Revenue Expenses: Raw materials Wages Utilities Rent Insurance Miscellaneous Total expense Net operating income $ 0X U 430 F 800 U 0 0 745 None None F 0X U 0 U
Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Fixed Element per Month $ 7,300 $ 3,330 $ 4,300 $ 3,050 $ 820 Variable Element per Actual Total for June Liter $29.00 $ 6.35 $ 3.10 $ 1.90 $ 2.05 $ 175,540 $ 40,630 $ 26,400 $ 16,100 $ 4,300 $ 3,050 $ 12,990 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 $7,300 plus $3.10 per liter of gelato sold and the actual wages for June were $26,400. Via Gelato expected to sell 6,100 liters in June, but actually sold 6,300 liters.
Transcribed Image Text:Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Fixed Element per Month $ 7,300 $ 3,330 $ 4,300 $ 3,050 $ 820 Variable Element per Actual Total for June Liter $29.00 $ 6.35 $ 3.10 $ 1.90 $ 2.05 $ 175,540 $ 40,630 $ 26,400 $ 16,100 $ 4,300 $ 3,050 $ 12,990 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 $7,300 plus $3.10 per liter of gelato sold and the actual wages for June were $26,400. Via Gelato expected to sell 6,100 liters in June, but actually sold 6,300 liters.
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