ezto.mheducation.com/hm.tpx Via Gelato is a popular neighborhood gelato shop. Th
ID: 2572975 • Letter: E
Question
ezto.mheducation.com/hm.tpx Via Gelato is a popular neighborhood gelato shop. The company has provided the following data conceming its operations: Element Element Total for per Month per June Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous 31.00 $191,540 $ 6.55 $ 42,830 $7,500 $ 3.30 28,000 $ 3,530 $ 2.10 $ 17,400 $ 4,500 S 3,250 S 840 2.25 S 14,690 $ 4,500 $ 3,250 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 $7 500 plus $3.30 per liter of gelato sold and the actual wages for June were $28,000. Via Gelato expected to sell 6,200 iters in June, but actually sold 6,400 liters Required 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 "Nons" for no effect (i.e., zero variance)-) Via Gelato Revenue and Spending Variances For the Month Ended June 30 Revenue 6,860 Expenses: Raw materials Wages Utilties Rent Insurance Miscellaneous 910 Total expense Net operating income References Book& Resources Type here to search aoe!Explanation / Answer
Solution:
Revenue and spending variance
For the month ended June 30
Working
Revenue
6860
U
(6400 * 31) - 191540
Expenses
Raw materials
910
U
(6400 * 6.55) - 42830
Wages
620
F
(7500 + 6400*3.30)-28000
Utilities
430
F
(3530 + 6400*2.10)-17400
Rent
0
None
Insurance
0
None
Miscellaneous
550
F
(840 + 6400*2.25) -14690
Total expense
170
U
Net operating income
7030
U
Working:
Flexible
Actual
Diff
Revenue
198400
191540
6860
U
Expenses
Raw materials
41920
42830
-910
U
Wages
28620
28000
620
F
Utilities
16970
17400
-430
U
Rent
4500
4500
0
None
Insurance
3250
3250
0
None
Miscellaneous
15240
14690
550
F
Total expense
110500
110670
-170
U
Net operating income
87900
80870
7030
U
Revenue and spending variance
For the month ended June 30
Working
Revenue
6860
U
(6400 * 31) - 191540
Expenses
Raw materials
910
U
(6400 * 6.55) - 42830
Wages
620
F
(7500 + 6400*3.30)-28000
Utilities
430
F
(3530 + 6400*2.10)-17400
Rent
0
None
Insurance
0
None
Miscellaneous
550
F
(840 + 6400*2.25) -14690
Total expense
170
U
Net operating income
7030
U
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