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 | $ | 14.20 | $ | 79,950 | ||
Raw materials | $ | 4.50 | $ | 26,210 | ||
Wages | $ | 4,800 | $ | 1.10 | $ | 11,250 |
Utilities | $ | 1,860 | $ | 0.10 | $ | 2,272 |
Rent | $ | 3,190 | $ | 3,190 | ||
Insurance | $ | 1,870 | $ | 1,870 | ||
Miscellaneous | $ | 510 | $ | 0.10 | $ | 1,166 |
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 $4,800 plus $1.10 per liter of gelato sold, and the actual wages for July were $11,250. Gelato Supremo expected to sell 5,500 liters in July, but actually sold 5,400 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)NoneUF | |||
Insurance | (Click to select)UNoneF | |||
Miscellaneous | (Click to select)UNoneF | |||
Total expense | (Click to select)FUNone | |||
Net operating income | $ | $ | $ | (Click to select)FUNone |
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