Via Gelato, a popular neighborhood gelato shop, provided the following cost formulas and actual results for the month of June Fixed Variable Element per Element per Actual Total Month Liter for June $ 13.00 $4.75 $ 1.50 $0.30 Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Revenue Expenses $5,700 $ 1,730 $ 2,700 $1,450 5.600 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 exam wages should be $5,700 plus $1.50 per liter of gelato sold and the actual wages for June were $14,560 via Gelato expected to sell 6,000 liters in June but actually sold 6.200 liters. Raw materials Wages Utides Rent 0.45 Required: Calculate Via Gelato's revenue and spending variances for June Note: Indicate the effect of each variance by selecting "F" f variance). Input all amounts as positive values. Via Gelato Revenue and Spending Variances For the Month Ended June 30 Insurance Miscellaneous Total expenses Net operating income $ 72,548 $ 30,330 $ 14,560 $ 3,800 $ 2,700 $ 1,450 $ 2,990 for favorable, "U" for d "None" for None" for no effect (.e, zero
Via Gelato, a popular neighborhood gelato shop, provided the following cost formulas and actual results for the month of June Fixed Variable Element per Element per Actual Total Month Liter for June $ 13.00 $4.75 $ 1.50 $0.30 Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Revenue Expenses $5,700 $ 1,730 $ 2,700 $1,450 5.600 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 exam wages should be $5,700 plus $1.50 per liter of gelato sold and the actual wages for June were $14,560 via Gelato expected to sell 6,000 liters in June but actually sold 6.200 liters. Raw materials Wages Utides Rent 0.45 Required: Calculate Via Gelato's revenue and spending variances for June Note: Indicate the effect of each variance by selecting "F" f variance). Input all amounts as positive values. Via Gelato Revenue and Spending Variances For the Month Ended June 30 Insurance Miscellaneous Total expenses Net operating income $ 72,548 $ 30,330 $ 14,560 $ 3,800 $ 2,700 $ 1,450 $ 2,990 for favorable, "U" for d "None" for None" for no effect (.e, zero
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Variable
Element per Element per Actual Total
Month
Liter
$ 13.00
$4.75
$ 1.50
for June
$ 72,548
$ 30,330
$ 14,560
$ 0.30
Revenue
Raw materials
Wages
Utilities
Rent
Insurance
Miscellaneous
Revenue
Expenses
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 $5,700 plus $1.50 per liter of gelato sold and the actual wages for June were $14,560. Via Gelato expected to sell
6,000 liters in June but actually sold 6,200 liters
Raw materials
Wages
Utides
Rent
$ 5,700
$ 1,730
$ 2,700
$1,450
5.660
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 (.e., zero
variance). Input all amounts as positive values.
0.45
Via Gelato
Revenue and Spending Variances
For the Month Ended June 30
Insurance
Miscellaneous
Total expenses
Not operating income
$ 3,800
$ 2,700
$ 1,450
$ 2,990
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