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 $29.00 $175,540 6.35 40,630 $7,300 3.10 26,400 $3,330 1.90 16,100 $ 4,300 $ 3,050 $ 820 2.05 12,990 $4,300 $3,050 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 $3.10 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: Complete the report showing Via Gelato revenue and spending variances for June. (Input all amounts as postive 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 Revenue and Spending Variances For the Month Ended June 30 Revenue Expenses Raw materials Wages Utilities Rent Insurance Miscellaneous Total expense Net operating income

Explanation / Answer

Revenue and spending variance :

Revenue 7160 U Expenses Raw material 625 U Wages 430 F Utilities 800 U Rent None Insurance None Miscellaneous 745 F Total expense 250 U Net operating income 7410 U

Related Questions

Navigate

• Browse (All)
• Browse V
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.