Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Would love some help with this Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results
Would love some help with this
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 ElementVariable ElementActual Total per Month per Liter for June Revenue 12 . 00 $ 71 , 540 Raw materials 4 . 65 S 29, 230 Wages $ 5, 600 1 . 40 S 13, 860 Utilities 1, 630 0. 20 S 3, 270 Rent 2, 600 S 2, 600 Insurance 1, 350 1, 350 Miscellaneous 650 $ 0 . 35 2, 590 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 $5,600 plus $1.40 per liter of gelato sold and the actual wages for June were $13,860. Via Gelato expected to sell 6,000 liters in June, but actually sold 6,200 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.)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started