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 Revenue Expenses: Fixed Element per Month Raw materials Wages Utilities Rent $ 7,100 $ 3,130 $4,100 $ 2,850 $ 800 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 $7,100 plus $2.90 per liter of gelato sold and the actual wages for June were $24,900. 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 Insurance Miscellaneous Variable Element per Liter $ 27.00 $6.15 $ 2.90 $ 1.70 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.) Total expense Net operating income 1.85 Actual Total for June $ 160,540 $ 38,430 $ 24,900 $ 14,200 $4,100 $ 2,850 $ 11,790

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 Revenue Expenses: Fixed Element per Month Raw materials Wages Utilities Rent $ 7,100 $ 3,130 $4,100 $ 2,850 $ 800 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 $7,100 plus $2.90 per liter of gelato sold and the actual wages for June were $24,900. 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 Insurance Miscellaneous Variable Element per Liter $ 27.00 $6.15 $ 2.90 $ 1.70 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.) Total expense Net operating income 1.85 Actual Total for June $ 160,540 $ 38,430 $ 24,900 $ 14,200 $4,100 $ 2,850 $ 11,790

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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