Question
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
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 | $ | 13.60 | $ | 71,280 | ||
Raw materials | $ | 4.50 | $ | 24,420 | ||
Wages | $ | 4,700 | $ | 1.10 | $ | 10,750 |
Utilities | $ | 1,860 | $ | 0.10 | $ | 2,231 |
Rent | $ | 3,110 | $ | 3,110 | ||
Insurance | $ | 1,890 | $ | 1,890 | ||
Miscellaneous | $ | 550 | $ | 0.10 | $ | 1,168 |
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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 $4,700 plus $1.10 per liter of gelato sold, and the actual wages for July were $10,750. Gelato Supremo expected to sell 5,100 liters in July, but actually sold 5,000 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 | $ | $ | $ | |
| | | ||
Expenses: | ||||
Raw materials | ||||
Wages | ||||
Utilities | ||||
Rent | ||||
Insurance | ||||
Miscellaneous | ||||
| | | ||
Total expense | ||||
| | | ||
Net operating income | $ | $ | $ | |
| | |
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