Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Fixed Element per Month Variable Element per Actual Total Liter for June Revenue $ 24.00 $ 150,540 Raw materials $ 5.85 $ 38,930 Wages $ 6,800 $ 2.60 $ 23,700 Utilities $ 2,830 $ 1.40 $ 12,400 Rent $ 3,800 $ 3,800 Insurance $ 2,550 $ 2,550 Miscellaneous $ 770 $ 1.55 $ 10,790 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 $6,800 plus $2.60 per liter of gelato sold and the actual wages for June were $23,700. Via Gelato expected to sell 6,400 liters in June, but actually sold 6,600 liters. 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.) Revenue Expenses Via Gelato Revenue and Spending Variances For the Month Ended June 30 Raw materials Wages Utilities Rent Insurance Miscellaneous Total expense Net operating income
Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Fixed Element per Month Variable Element per Actual Total Liter for June Revenue $ 24.00 $ 150,540 Raw materials $ 5.85 $ 38,930 Wages $ 6,800 $ 2.60 $ 23,700 Utilities $ 2,830 $ 1.40 $ 12,400 Rent $ 3,800 $ 3,800 Insurance $ 2,550 $ 2,550 Miscellaneous $ 770 $ 1.55 $ 10,790 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 $6,800 plus $2.60 per liter of gelato sold and the actual wages for June were $23,700. Via Gelato expected to sell 6,400 liters in June, but actually sold 6,600 liters. 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.) Revenue Expenses Via Gelato Revenue and Spending Variances For the Month Ended June 30 Raw materials Wages Utilities Rent Insurance Miscellaneous Total expense Net operating income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
mn.3
![Exercise 9-15 (Algo) Flexible Budgets and Revenue and Spending Variances [LO9-1, LO9-2]
Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the
month of June:
Fixed
Element
per Month
Variable
Element per Actual Total
Revenue
Liter
$ 24.00
for June
$ 150,540
Raw materials
$ 5.85
$ 38,930
Wages
$ 6,800
$ 2.60
$ 23,700
Utilities
$ 2,830
$ 1.40
$ 12,400
Rent
$ 3,800
$ 3,800
Insurance
$ 2,550
$ 2,550
Miscellaneous
$ 770
$ 1.55
$ 10,790
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 $6,800 plus $2.60 per liter of gelato sold and the actual wages for June were $23,700. Via Gelato expected to sell
6,400 liters in June, but actually sold 6,600 liters.
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.)
Revenue
Expenses
Via Gelato
Revenue and Spending Variances
For the Month Ended June 30
Raw materials
Wages
Utilities
Rent
Insurance
Miscellaneous
Total expense
Net operating income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdd76d7b3-3aa3-499f-94be-9070dc374549%2F8a4edd9f-12ca-4b19-ad89-115ee036c5f1%2Fstiaatk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 9-15 (Algo) Flexible Budgets and Revenue and Spending Variances [LO9-1, LO9-2]
Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the
month of June:
Fixed
Element
per Month
Variable
Element per Actual Total
Revenue
Liter
$ 24.00
for June
$ 150,540
Raw materials
$ 5.85
$ 38,930
Wages
$ 6,800
$ 2.60
$ 23,700
Utilities
$ 2,830
$ 1.40
$ 12,400
Rent
$ 3,800
$ 3,800
Insurance
$ 2,550
$ 2,550
Miscellaneous
$ 770
$ 1.55
$ 10,790
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 $6,800 plus $2.60 per liter of gelato sold and the actual wages for June were $23,700. Via Gelato expected to sell
6,400 liters in June, but actually sold 6,600 liters.
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.)
Revenue
Expenses
Via Gelato
Revenue and Spending Variances
For the Month Ended June 30
Raw materials
Wages
Utilities
Rent
Insurance
Miscellaneous
Total expense
Net operating income
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education