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 Fixed Element per Month per Liter $29.00 $ 6.35 $ 3.10 $ 1.90 Variable Element $ 7,300 $ 3,330 $ 4,300 $ 3.050 Actual Total for June $ 175,540 $ 40,630 $ 26,400 $ 16,100 $ 4,300
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 Fixed Element per Month per Liter $29.00 $ 6.35 $ 3.10 $ 1.90 Variable Element $ 7,300 $ 3,330 $ 4,300 $ 3.050 Actual Total for June $ 175,540 $ 40,630 $ 26,400 $ 16,100 $ 4,300
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D8.
![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
Fixed
Element
per Month
Revenue
Expenses:
$ 7,300
$ 3,330
$ 4,300
$ 3,050
$ 820
$ 2.05
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 $7,300 plus $3.10 per liter of gelato sold and the actual wages for June were $26,400. Via Gelato expected to sell
6,100 liters in June, but actually sold 6,300 liters.
Raw materials
Variable
Element
per Liter
$29.00
$6.35
$ 3.10
$ 1.90
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
Wages
Utilities
Rent
Insurance
Miscellaneous
Actual
Total for
June
$ 175,540
$ 40,630
$ 26,400
$ 16,100
$ 4,300
$ 3,050
$ 12,990](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F644cf43a-ea1d-40a8-89e2-17a7f7fe81cb%2Feee98964-063e-42bb-add5-de47e19387f3%2F9aupzhw_processed.jpeg&w=3840&q=75)
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
Fixed
Element
per Month
Revenue
Expenses:
$ 7,300
$ 3,330
$ 4,300
$ 3,050
$ 820
$ 2.05
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 $7,300 plus $3.10 per liter of gelato sold and the actual wages for June were $26,400. Via Gelato expected to sell
6,100 liters in June, but actually sold 6,300 liters.
Raw materials
Variable
Element
per Liter
$29.00
$6.35
$ 3.10
$ 1.90
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
Wages
Utilities
Rent
Insurance
Miscellaneous
Actual
Total for
June
$ 175,540
$ 40,630
$ 26,400
$ 16,100
$ 4,300
$ 3,050
$ 12,990
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