Question
Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: While
Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June:
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 $6,300 plus $2.10 per liter of gelato sold and the actual wages for June were $18,900. Via Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters.
Calculate Via Gelato 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 (i.e., zero variance). Input all amounts as positive values.
RevenueRawmaterialsWagesUtilitiesRentInsuranceFixedElementperMonth$19.00$6,300$2,330$3,300$2,050$720VariableElementperLiter$111,530$5.35$0.90$2,0501.05ActualTotalforJune$33,830$8,100$3,300$6,900
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