50.1K

Verified Solution

Link Copied!

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 per Month per Liter Actual Total for June Revenue $ 14.00 $ 83,540 Raw materials $ 4.85 $ 31,430 Wages $ 5,800 $1.60 $ 15,800 Utilities $ 1,830 $ 0.40 $ 4,500 Rent $ 2,800 Insurance $ 1,550 Miscellaneous $ 670 $ 0.55 $ 2,800 $ 1,550 $ 4,050 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 $5,800 plus $1.60 per liter of gelato sold and the actual wages for June were $15,800. Via Gelato expected to sell 6,200 liters in June, but actually sold 6,400 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.) Revenue Via Gelato Revenue and Spending Variances Expenses: For the Month Ended June 30 Raw materials Wages Utilities Rent Insurance While gelato is sold by the cone or cup, the shop measures its activity in terms of the tota wages should be $5,800 plus $1.60 per liter of gelato sold and the actual wages for June- 6,200 liters in June, but actually sold 6,400 liters. Required: Calculate Via Gelato revenue and spending variances for June. (Indicate the effect of ear "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as Revenue Via Gelato Revenue and Spending Variances For the Month Ended June 30 Expenses: Raw materials Wages Utilities Rent Insurance Miscellaneous Total expense Net operating income

Answer & Explanation Solved by verified expert

See Answer