Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: ETTT

image text in transcribed

Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: ETTT Fixed Element Variable Element Actual Total per Liter $23.00 $ 5.75 for June per Month $140,540 $37,030 $21,800 $ 11,600 Revenue Raw materials 6,700 2,730 $3,700 2,450 $2.50 $ 1.30 Wages Utilities 3,700 2,450 9,390 Rent S Insurance $ 1.45 Miscellaneous 760 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 $6,700 plus $2.50 per liter of gelato sold and the actual wages for June were $21,800. 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. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero varlance). Input all amounts as positive values.) Via Gelato Revenue and Spending Variances For the Month Ended June 30 Revenue Expenses: Raw materials Wages Utilities Rent Insurance Miscellaneous Total expense Net operating income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

I Love My Awesome Auditor

Authors: Lovely Hearts Publishing

1st Edition

1794298169, 978-1794298163

More Books

Students also viewed these Accounting questions