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 $ 5,900 $ 1,930 $2,900 $ 1,650 $ 680 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 $5,900 plus $1.70 per liter of gelato sold and the actual wages for June were $15,900. Via Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters. Wages Utilities Rent Insurance Miscellaneous Variable Element per Actual Total for June $ 84,540 $ 31,530 $ 15,900 $ 5,500 $ 2,900 $1,650 $ 4,150 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 Liter $15.00 $4.95 $ 1.70 $ 0.50 Via Gelato Revenue and Spending Variances For the Month Ended June 30 $ 0.65

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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
$ 5,900
$ 1,930
$ 2,900
$1,650
$ 680
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 $5,900 plus $1.70 per liter of gelato sold and the actual wages for June were $15,900. Via Gelato expected to sell
6,000 liters in June, but actually sold 6,200 liters.
Wages
Utilities
Rent
Insurance
Miscellaneous
Variable
for June
Element per Actual Total
Liter
$15.00
$4.95
$ 1.70
$ 0.50
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.)
Via Gelato
Revenue and Spending Variances
For the Month Ended June 30
Total expense
Net operating income
$ 0.65
$ 84,540
$ 31,530
$ 15,900
$ 5,500
$ 2,900
$1,650
$ 4,150
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 Revenue Expenses: Fixed Element per Month Raw materials $ 5,900 $ 1,930 $ 2,900 $1,650 $ 680 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 $5,900 plus $1.70 per liter of gelato sold and the actual wages for June were $15,900. Via Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters. Wages Utilities Rent Insurance Miscellaneous Variable for June Element per Actual Total Liter $15.00 $4.95 $ 1.70 $ 0.50 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.) Via Gelato Revenue and Spending Variances For the Month Ended June 30 Total expense Net operating income $ 0.65 $ 84,540 $ 31,530 $ 15,900 $ 5,500 $ 2,900 $1,650 $ 4,150
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