Via Gelato is a popular neighborhood gelato shop. The company has provided the following data concerning its operations:Fixed Variable ActualElement Element Total forper Month per Liter JuneRevenue .......................... $12.00 $71,540Raw materials ................. $4.65 $29,230Wages ............................. $5,600 $1.40 $13,860Utilities ............................ $1,630 $0.20 $3,270Rent ................................ $2,600 $2,600Insurance ........................ $1,350 $1,350Miscellaneous ................. $650 $0.35 $2,590While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of litersof gelato sold. For example, wages should be $5,600 plus $1.40 per liter of gelato sold and the actual wagesfor June were $13,860. Via Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters.Required:Prepare a report showing Via Gelato revenue and spending variances for June.
Via Gelato is a popular neighborhood gelato shop. The company has provided the following data concerning its operations:
Fixed Variable Actual
Element Element Total for
per Month per Liter June
Revenue .......................... $12.00 $71,540
Raw materials ................. $4.65 $29,230
Wages ............................. $5,600 $1.40 $13,860
Utilities ............................ $1,630 $0.20 $3,270
Rent ................................ $2,600 $2,600
Insurance ........................ $1,350 $1,350
Miscellaneous ................. $650 $0.35 $2,590
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 $5,600 plus $1.40 per liter of gelato sold and the actual wages
for June were $13,860. Via Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters.
Required:
Prepare a report showing Via Gelato revenue and spending variances for June.
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