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: Fixed

image text in transcribed
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: Fixed Element Variable Element Actual Total per Month per Leiter for June Revenue $31.00 $191,540 Raw materials $ 6.55 $ 42,830 Wages $ 7.500 $ 3.30 $ 28,000 Utilities $ 3,530 $ 2.10 $ 17.400 Rent $ 4,500 $ 4.500 Tsurance $ 3.250 $ 3.250 Miscellaneous $ 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 Gulato Revenue and Spending Variances For the Month Ended June 30 Revenue Expenses Raw materials Wages F Us U Rent None None Wages $ 3.30 $ 2.10 Bent 0.7.500 $3,530 $6,500 $3,250 340 $ 20,000 $17.400 $ 4,500 $3,250 $ 14,690 Miscellaneous $ 2.25 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 (le, zero variance), Input all amounts as positive values.) Via Gelato Revenue and Spending Variances For the Month Ended June 30 Revenue u Expenses Raw materials TU Wages F Utilities U Rent None Insurance None 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

Management And Cost Accounting Student Manual Free Tracked Delivery

Authors: Colin Drury, Mike Tayles

1st Edition

9781473773622

More Books

Students also viewed these Accounting questions