Via Gelato, a popular neighborhood gelato shop, provided the following cost formulas and actual results for the month of June: Fixed Element per Month Variable Actual Element per Total for Liter June Revenue $ 21.00 $ 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 Miscellaneous $ 740 1.25 $ 2,250 $ 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. Revenue Expenses: Via Gelato Revenue and Spending Variances For the Month Ended June 30 Raw materials Wages Utilities Rent Insurance Miscellaneous Total expenses Net operating income
Via Gelato, a popular neighborhood gelato shop, provided the following cost formulas and actual results for the month of June: Fixed Element per Month Variable Actual Element per Total for Liter June Revenue $ 21.00 $ 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 Miscellaneous $ 740 1.25 $ 2,250 $ 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. Revenue Expenses: Via Gelato Revenue and Spending Variances For the Month Ended June 30 Raw materials Wages Utilities Rent Insurance Miscellaneous Total expenses Net operating income
Chapter3: Cost-volume-profit Analysis
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![Via Gelato, a popular neighborhood gelato shop, provided the following cost formulas and actual results for the month of June:
Fixed
Element
per Month
Variable
Actual
Element per Total for
Liter
June
Revenue
$ 21.00
$ 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
Miscellaneous
$ 740
1.25
$ 2,250
$ 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.
Revenue
Expenses:
Via Gelato
Revenue and Spending Variances
For the Month Ended June 30
Raw materials
Wages
Utilities
Rent
Insurance
Miscellaneous
Total expenses
Net operating income
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Transcribed Image Text:Via Gelato, a popular neighborhood gelato shop, provided the following cost formulas and actual results for the month of June:
Fixed
Element
per Month
Variable
Actual
Element per Total for
Liter
June
Revenue
$ 21.00
$ 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
Miscellaneous
$ 740
1.25
$ 2,250
$ 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.
Revenue
Expenses:
Via Gelato
Revenue and Spending Variances
For the Month Ended June 30
Raw materials
Wages
Utilities
Rent
Insurance
Miscellaneous
Total expenses
Net operating income
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