Vla Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Revenue Fixed Element per Month Variable Element per Actual Total Liter $ 30.00 for June $ 190,540 Raw materials $ 6.45 $ 42,930 Wages $ 7,400 $ 3.20 $ 28,400 Utilities Rent $ 3,430 $ 2.00 $ 17,300 $ 4,400 $ 4,400 Insurance Miscellaneous $ 3,150 $ 830 $ 3,150 $2.15 $ 14,390 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 vages should be $7,400 plus $3.20 per liter of gelato sold and the actual wages for June were $28,400. Via Gelato expected to sell 5,400 liters In June, but actually sold 6,600 liters. Required: Calculate Via Gelato revenue and spending variances for June. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values.)

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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
$ 30.00
$ 190,540
Raw materials
$ 6.45
$ 42,930
Wages
$ 7,400
$ 3.20
$ 28,400
Utilities
$ 3,430
$ 2.00
$ 17,300
Rent
$ 4,400
$ 4,400
Insurance
$ 3,150
$ 3,150
Miscellaneous
$ 830
$ 2.15
$ 14,390
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 $7,400 plus $3.20 per liter of gelato sold and the actual wages for June were $28,400. 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 (l.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
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: Fixed Element per Month Variable Element per Actual Total Liter for June Revenue $ 30.00 $ 190,540 Raw materials $ 6.45 $ 42,930 Wages $ 7,400 $ 3.20 $ 28,400 Utilities $ 3,430 $ 2.00 $ 17,300 Rent $ 4,400 $ 4,400 Insurance $ 3,150 $ 3,150 Miscellaneous $ 830 $ 2.15 $ 14,390 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 $7,400 plus $3.20 per liter of gelato sold and the actual wages for June were $28,400. 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 (l.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
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