Question
Exercise 8-15 Flexible Budgets and Revenue and Spending Variances [LO8-1, LO8-2] Via Gelato is a popular neighborhood gelato shop. The company has provided the following
Exercise 8-15 Flexible Budgets and Revenue and Spending Variances [LO8-1, LO8-2]
| Via Gelato 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 June | ||||
| Revenue | $ | 26.00 | $ | 152,540 | ||
| Raw materials | $ | 6.05 | $ | 38,130 | ||
| Wages | $ | 7,000 | $ | 2.80 | $ | 23,900 |
| Utilities | $ | 3,030 | $ | 1.60 | $ | 13,100 |
| Rent | $ | 4,000 | $ | 4,000 | ||
| Insurance | $ | 2,750 | $ | 2,750 | ||
| Miscellaneous | $ | 790 | $ | 1.75 | $ | 11,430 |
| 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 $7,000 plus $2.80 per liter of gelato sold and the actual wages for June were $23,900. Via Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters. |
| Required: |
| Complete the report showing Via Gelato revenue and spending variances for June. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) |
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Auditing Business Functions A Practical Guide To Drafting An Audit Auditing And Assurance Services
Authors: Ward Berrios
1st Edition
B097D4S7SD, 979-8524939265
