Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Fixed Element Variable Element Actual Total per Month per Liter for June $31.00 $ 191,540 $ 6.55 $ 42,830 $ 7,500 $ 3.30 $ 28,000 $ 3,530 $ 2.10 $ 17,400 $ 4,500 $ 4,500 $ 3,250 $ 3,250 $ 840 $ 2.25 $ 14,690 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 $7,500 plus $3.30 per liter of gelato sold and the actual wages for June were $28,000. Via Gelato expected to sell 6,200 liters in June, but actually sold 6,400 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 variance). Input all amounts as positive values.) Via Gelato 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 The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reportsthe number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 64 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Cost per cost per Month Course Student $ 2,960 $ 300 $1,220 $ 75 $5,100 $2,300 $3,900 $ 40 $ 3 For example, administrative expenses should be $3,900 per month plus $40 per course plus $3 per student. The company's sales should average $850 per student. The company planned to run four courses with a total of 64 students; however, it actually ran four courses with a total of only 56 students. The actual operating results for September appear below: Revenue Instructor wages classroom supplies Utilities Campus rent Insurance Administrative expenses Actual $ 51,500 $ 11,120 $ 19,050 $ 1,930 $ 5,100 $ 2,440 $ 3,678 Required: Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September. (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.) Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Actual Results Flexible Budget Planning Budget Courses Students 56 Revenue 51,500 Expenses: Instructor wages Classroom supplies Utilities Campus rent 11,120 19,050 1,930 5,100 2,440 3,678 43,318 8,182 Insurance Administrative expenses Total expense Net operating income
