Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

35 points 00:34:28 ellook Via Gelato, a popular neighborhood gelato shop, provided the following cost formulas and actual results for the month of June:

image text in transcribed

35 points 00:34:28 ellook Via Gelato, a popular neighborhood gelato shop, provided the following cost formulas and actual results for the month of June: Fixed Variable Element per Element per Actual Total Month Revenue Liter $13.00 for June $ 72,540 Raw materials Wages $4.75 $ 30,330 $ 5,700 $1.50 $ 14,560 Utilities $1,730 $ 0.30 $ 3,800 Rent $2,700 $2,700 Insurance Miscellaneous $1,450 $1,450 $660 0.45 $2,990 Print References 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 $5,700 plus $1.50 per liter of gelato sold and the actual wages for June were $14,560 Via Gelato expected to sell 6,000 liters in June but actually sold 6,200 liters Required: Calculate Via Gelato's revenue and spending variances for June. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values. Revenue Expenses: Via Gelato Revenue and Spending Variances For the Month Ended June 30 Raw materials. Wages Utilities Rent Insurance Miscellaneous Total expenses Not operating income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

7th Edition

978-0470477151, 978-0-470-5562, 470556242, 0-470-55624-2, 9780470556245, 978-0470507018

More Books

Students also viewed these Accounting questions

Question

What are the responsibilities of the position?

Answered: 1 week ago