Via Gelato is a popular neighborhood gelato shop. Thecompany has provided the following cost formulas andactual results for the month of June:Fixed Element per Month Variable Element per LiterActual Total for JuneRevenue $ 20.00 $122,540Raw materials $ 5.45 $ 36,030Wages $ 6,400 $ 2.20 $ 20,200Utilities $ 2,430 $ 1.00 $ 9,100Rent $3,400 $3,400Insurance $ 2,150 $2,150Miscellaneous $ 730 $ 1.15 $ 8,050While gelato is sold by the cone or cup, the shopmeasures its activity in terms of the total number ofliters of gelato sold. For example, wages should be $6,400 plus $2.20 per liter of gelato sold and the actualwages for June were $20,200. Via Gelato expected tosell 6,300 liters in June, but actually sold 6,500 liters.Required:Calculate Via Gelato revenue and spending variancesfor June. (Indicate the effect of each variance byselecting "F" for favorable, "U" for unfavorable, and"None" for no effect (i.e., zero variance). Input allamounts as positive values.)

Actual Results Flexible budget Revenue and spending Variances Revenue…

Answered: Via Gelato is a popular neighborhood…

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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Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below. Sales Variable expenses Contribution margin Fixed expenses Net operating income Claimjumper $ 112,000 34,600 $77,400 Makeover $ 56,000 7,400 $ 48,600 Total $ 168,000 42,000 126,000 86,400 $ 39,600 Required: 1. What is the overall contribution margin (CM) ratio for the company? 2. What is the company's overall break-even point in dollar sales? 3. Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required 11 Required 21 Required 3 Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for the two products. (Do not round intermediate calculations, Round your…
Aa
Family Fun Time, Inc. makes board games. The following data pertains to the last six months: Manufacturing Overhead Direct Labor Hours 45,000 63,000 57,000 Month 1 Month 2 Month 3 Month 4 Month 5 $247,250 $178,200 $165,500 Month 6 Based on this data, what is the linear cost equation? (Round intermediary calculations to the nearest cent. Use the "high" data month to calculate your final answer. Do not use the "low" month, as it will result in an approximation of the cost.) 52,000 34,000 24,000 O A. y = $0.26X + $152,500 O B. y = $5.40X + $33,100 O C. y = $3.91X + $71,670 O D. Cannot be determined from information given. $295,000 $318,000 $323,000
7
Pathways Careers, Inc. has two products-Resume Reader and Cover Letter Cure. Financial data for both the products follow: Resume Cover Letter Reader Cure 2,600 units 1,300 units Units sold Sales price per unit Variable manufacturing cost per unit Sales commission (% of sales) $600 320 6% $1,000 650 4% Pathways has two sales representatives-Curtis Muller and Willow Brown. Each sales representative sold a total of 1,950 units during the month of March. Curtis had a sales mix of 60% Resume Reader and 40% Cover Letter Cure. Willow had a sales mix of 80% Resume Reader and 20% Cover Letter Cure. Based on the above information, calculate Willow's total contribution to company profits. OA. $380,640 O B. $120,900 OC. $501,540 OD. $573,300
Compute for the total cost per month using costing labor cost by the given data Compute for the percentage weight of the monetary benefit, non monetary benefit, and deferred monetary benefit Compute for the percentage of cost relevant to the sales of total labor cost, given that there are 40 employees in the company and the revenue of the company is 2,500,000 monthly.
Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost Cost per per Month Repair-Hour $ 21,500 $ 15.00. $7.30 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Revenue Expenses: Administrative expenses $ 0.50 For example, wages and salaries should be $21,500 plus $15.00 per repair-hour. The company expected to work 3,000 repair-hours in May, but actually worked 2,900 repair-hours. The company expects its sales to be $54.00 per repair-hour. $ 2,760 $ 5,740 Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent $ 4,630 $ 3,820 Jake's Roof Repair Activity Variances For the Month Ended May 31 Administrative expenses Total expense Net operating income $…
Food Service Corp. offers a meal service for commuting college students. In the month of January, 2,000 meals were served at a total cost of $9,700. In February, 1,450 meals were served at a total cost of $7,300, and the total number of meals served for March were 1,100 at a total cost of $6,100. Using the high-low method, the variable cost per unit is $4.00. What is the total fixed cost and the total variable cost for January? a. The total fixed cost is $8,000, and the variable cost is $1,700. b. The total fixed cost is $5,600, and the variable cost is $4,100. O c. The total fixed cost is $4,100, and the variable cost is $5,600. d. The total fixed cost is $1,700, and the variable cost is $8,000.
D8.
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Cove’s Cakes is a local bakery. Price and cost information follows: Price per cake $ 13.21 Variable cost per cake Ingredients 2.31 Direct labor 1.07 Overhead (box, etc.) 0.23 Fixed cost per month $ 3,456.00 Required: 1. Calculate Cove’s new break-even point under each of the following independent scenarios: a. Sales price increases by $1.70 per cake. b. Fixed costs increase by $470 per month. c. Variable costs decrease by $0.39 per cake. d. Sales price decreases by $0.80 per cake. 2. Assume that Cove sold 380 cakes last month. Calculate the company’s degree of operating leverage. 3. Using the degree of operating leverage, calculate the change in profit caused by a 13 percent increase in sales revenue. Using the degree of operating leverage, calculate the change in profit caused by a 13 percent increase in sales revenue. (Round your intermediate values to 2 decimal places. (i.e. 0.1234 should be entered as 12.34%.)) I am having…
Subject: Acounting

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