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

Question

Via Gelato is a popular neighborhood gelato shop The company has provided the following cost formulas and actual resits for the month of June 21.00 $ 5.55 2.30 1.18 $133,5440 37,130 21,300 10,000 $3,500 $ 2.25e $8,790 Mages Utilities 3,580 2,250 748 Niscell 1.25 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 $6,500 plus $2 30 per liter of gelato sold and the actual wages for June were $21,300. Via Gelato expected to sell 6.400 liters in June, but actually sold 6,600 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 velues) Revenue and Spending Variances For the Month Ended June 30 Total expense Net operating income

Explanation / Answer

Actual Revenue and spending variances Flexible budget Revenue 133540 5060 U 138600 Expenses: Raw materials 37130 500 U 36630 Wages 21300 380 F 21680 Utilities 10000 210 U 9790 Rent 3500 0 None 3500 Insurance 2250 0 None 2250 Miscellaneous 8790 200 F 8990 Total expense 82970 130 U 82840 Net operating income 50570 5190 U 55760

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