Question
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
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 | $ | 13.70 | $ | 73,726 | ||
| Raw materials | $ | 4.70 | $ | 26,092 | ||
| Wages | $ | 4,500 | $ | 1.19 | $ | 11,133 |
| Utilities | $ | 1,870 | $ | 0.13 | $ | 2,416 |
| Rent | $ | 3,160 | $ | 3,160 | ||
| Insurance | $ | 1,860 | $ | 1,860 | ||
| Miscellaneous | $ | 510 | $ | 0.11 | $ | 1,191 |
| 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 $4,500 plus $1.19 per liter of gelato sold and the actual wages for June were $11,133. Via Gelato expected to sell 5,300 liters in June, but actually sold 5,145 liters. Complete the report showing Via Gelato revenue and spending variances for June. Revenue? Expenses? Total expense? Net income? |
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Construction Contractors AICPA Audit And Accounting Guide
Authors: American Institute Of CPAs
1st Edition
0870519751, 978-0870519758
