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:

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 $6,900 plus $2.70 per liter of gelato sold and the actual wages for June were $23,500. Via Gelato expected to sell 6,200 liters in June, but actually sold 6,400 liters.

Complete the report showing Via Gelato revenue and spending variances for June. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Via Gelato is a popular neighborhood gelato shop. The company has provided the following data concerning its operations:

Explanation / Answer

Via Gelato Revenue and Spending Variances For the Month Ended June 30 Actual Revenue and Spending Variances Flexible budget Revenue 151540 8460 U 160000 Expenses: Raw materials 39030 950 U 38080 Wages 23500 680 F 24180 Utilities 13000 470 U 12530 Rent 3900 0 None 3900 Insurance 2650 0 None 2650 Miscellaneous 10890 450 F 11340 Total expense 92970 290 U 92680 Net operating income 58570 8750 U 67320

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