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: Raw materials Fixed Element per Month 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 $7,200 plus $3.00 per liter of gelato sold and the actual wages for June were $26,300. Via Gelato expected to sell 6,200 liters in June, but actually sold 6,400 liters. Via Gelato Revenue and Spending Variances For the Month Ended June 30 Wages Utilities Rent $ 7,200 $ 3,230 $ 4,200 $ 2,950 $ 810 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.) Insurance Miscellaneous Variable Element per Liter $ 28.00 $ 6.25 $ 3.00 $ 1.80 Total expense Net operating income 1.95 Actual Total for June $ 171,540 $ 40,530 $ 26,300 $ 15,000 $ 4,200 $ 2,950 $ 12,890

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: Raw materials Fixed Element per Month 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 $7,200 plus $3.00 per liter of gelato sold and the actual wages for June were $26,300. Via Gelato expected to sell 6,200 liters in June, but actually sold 6,400 liters. Via Gelato Revenue and Spending Variances For the Month Ended June 30 Wages Utilities Rent $ 7,200 $ 3,230 $ 4,200 $ 2,950 $ 810 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.) Insurance Miscellaneous Variable Element per Liter $ 28.00 $ 6.25 $ 3.00 $ 1.80 Total expense Net operating income 1.95 Actual Total for June $ 171,540 $ 40,530 $ 26,300 $ 15,000 $ 4,200 $ 2,950 $ 12,890

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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