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Acc 2: Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of
Acc 2:
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 per Month | Variable Element per Liter | Actual Total for June | |||||||
Revenue | $ | 29.00 | $ | 175,540 | |||||
Raw materials | $ | 6.35 | $ | 40,630 | |||||
Wages | $ | 7,300 | $ | 3.10 | $ | 26,400 | |||
Utilities | $ | 3,330 | $ | 1.90 | $ | 16,100 | |||
Rent | $ | 4,300 | $ | 4,300 | |||||
Insurance | $ | 3,050 | $ | 3,050 | |||||
Miscellaneous | $ | 820 | $ | 2.05 | $ | 12,990 | |||
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 $7,300 plus $3.10 per liter of gelato sold and the actual wages for June were $26,400. Via Gelato expected to sell 6,100 liters in June, but actually sold 6,300 liters.
Required:
Calculate Via Gelato revenue and spending variances for June.
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