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20. value: 5.78 points Exercise 8-15 Flexible Budgets and Revenue and Spending Variances [LO1, LO2] Gelato Supremo is a popular neighborhood gelato shop. The company

20.

value: 5.78 points

Exercise 8-15 Flexible Budgets and Revenue and Spending Variances [LO1, LO2]

Gelato Supremo is a popular neighborhood gelato shop. The company has provided the following data concerning its operations:

Fixed Element per Month Variable Element per Liter Actual Total for July
Revenue $ 13.90 $ 75,570
Raw materials $ 4.50 $ 25,340
Wages $ 4,500 $ 1.10 $ 10,730
Utilities $ 1,830 $ 0.10 $ 2,226
Rent $ 3,130 $ 3,130
Insurance $ 2,000 $ 2,000
Miscellaneous $ 540 $ 0.10 $ 1,178

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 $4,500 plus $1.10 per liter of gelato sold, and the actual wages for July were $10,730. Gelato Supremo expected to sell 5,300 liters in July, but actually sold 5,200 liters.

Required:

Prepare a report showing Gelato Supremo revenue and spending variances for July. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Gelato Supremo Revenue and Spending Variances For the Month Ended July 31
Flexible Budget Actual Results Revenue and Spending Variances
Revenue $ $ $ (Click to select)UFNone
Expenses:
Raw materials (Click to select)FUNone
Wages (Click to select)UFNone
Utilities (Click to select)FUNone
Rent (Click to select)UFNone
Insurance (Click to select)FNoneU
Miscellaneous (Click to select)UNoneF
Total expense (Click to select)UFNone
Net operating income $ $ $ (Click to select)UFNone

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