\\ e Solved: Flexible Budgets x Cf. Secure! https://newconnect.mheducation.com/f

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e Solved: Flexible Budgets x Cf. Secure! https://newconnect.mheducation.com/flow/connecthtml Connect Chapter 9 Homework G Saved 2 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 Variable Element Actual Total per Liter 29.00 S 6.35 3.33 points per Month Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous 7,300 3,330 $ 4,300 $3,050 $ 820 fon June 175,548 40,630 $ 26,486e $ 16,100 $ 4,300 3,e5e $ 12,999 3.1e eBook s 1.90 $ 2.05 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 $7,300 plus $310 per liter of gelato sold and the actual wages for June were $26.400. Via Gelato expected to sell 6,100 liters in June, but actually sold 6,300 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 (i.e., zero variance). Input all amounts as positive values.) Via Gelato Revenue and Spending Variances For the Month Ended June 30 Expenses Raw materials Wages Utilities

Explanation / Answer

Revenue Variance analysis Particulars Budgeted sales 6100 ltrs Actual sales 6300 ltrs Difference 200 ltrs Price per ltr $       29.00 Revenue variance $ 5,800.00 Effect F Expense variance analysis 1)Raw Material variance Standard cost for actual output-actual cost of materials used Standard cost (6.35 per litre *6300 ltrs) $ 40,005.00 less Actual cost $ 40,630.00 Variance $      -625.00 Effect U 2)Labour cost/wages variance Standard cost for actual output-actual wages Budgeted $ 26,830.00 {7300+(3.10*6300)} less Actuals $ 26,400.00 variance $ 430.00 Effect F 3)utilities Budgeted -Actuals Budgeted $ 15,270.00 (3300+1.90*6300) less Actuals $ 16,100.00 variance $      -830.00 Effect U 4)Rent Budgeted costs less actuals Budgeted cost $    4,300.00 less Actuals $    4,300.00 variance $                 -   Effect None 5)Insurance Budgeted $    3,050.00 less Actuals $    3,050.00 Variance $                 -   Effect None 6)Miscellaneous Budgeted $ 13,735.00 {820+(6300*2.05)} less Actuals $ 12,990.00 Variance $ 745.00 Effect F 7)Total expense Budgeted $ 1,03,190.00 less Actuals $ 1,03,470.00 Variance $         -280.00 Effect U 8)Net Income variance Budgeted $     73,710.00 less Actuals $     79,230.00 Variance $     -5,520.00 Effect F

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