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.)

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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