Via Gelato is a popular neighborhood gelato shop. The company has provided the f

Question

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 Raw materials Wages Utilities Rent Insurance Miscellaneous $22.00 $130,540 $ 5.65 35,930 $6,600 2.40 21,000 $2,630 $ 1.20 10,500 $ 3,600 $ 2,350 $ 750 1.35 8,590 $3,600 $2,350 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 $6,600 plus $2.40 per liter of gelato sold and the actual wages for June were $21,000. Via Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters

Explanation / Answer

Via Gelato Revenue and Spending Variance For the month ended June 30 Budget Actual Variance Revenue 136400 130540 5860 U Expenses: Raw Matreial 35030 35930 900 U Wages 21480 21000 480 F Utilities 10070 10500 430 U Rent 3600 3600 0 No variance Insurance 2350 2350 0 No variance Miscellaneous 9120 8590 530 F Total expenses 81650 81970 320 U Net operating income 54750 48570 6180 U

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