Vla Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Revenue Fixed Element per Month Variable Element per Actual Total Liter $ 30.00 for June $ 190,540 Raw materials $ 6.45 $ 42,930 Wages $ 7,400 $ 3.20 $ 28,400 Utilities Rent $ 3,430 $ 2.00 $ 17,300 $ 4,400 $ 4,400 Insurance Miscellaneous $ 3,150 $ 830 $ 3,150 $2.15 $ 14,390 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 vages should be $7,400 plus $3.20 per liter of gelato sold and the actual wages for June were $28,400. Via Gelato expected to sell 5,400 liters In June, but actually sold 6,600 liters. Required: Calculate Via Gelato revenue and spending variances for June. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values.)

Vla Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Revenue Fixed Element per Month Variable Element per Actual Total Liter $ 30.00 for June $ 190,540 Raw materials $ 6.45 $ 42,930 Wages $ 7,400 $ 3.20 $ 28,400 Utilities Rent $ 3,430 $ 2.00 $ 17,300 $ 4,400 $ 4,400 Insurance Miscellaneous $ 3,150 $ 830 $ 3,150 $2.15 $ 14,390 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 vages should be $7,400 plus $3.20 per liter of gelato sold and the actual wages for June were $28,400. Via Gelato expected to sell 5,400 liters In June, but actually sold 6,600 liters. Required: Calculate Via Gelato revenue and spending variances for June. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1PB: A company sells mulch by the cubic yard. Grade A much sells for $150 per cubic yard and has variable...

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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 per Month $ 6,700 $ 2,730 $ 3,700 $ 2,450 $ 760 Variable Element per Liter $ 23.00 $5.75 $2.50 $ 1.30. 1.45 Actual Total for June $ 140,540 $ 37,030 $ 21,800. $ 11,600 $ 3,700 $ 2,450 $ 9,390 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 variance). Input all amounts as positive values.)
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 per Month $ 6,300 $ 2,330 $ 3,300 $ 2,050 $ 720 Variable Element per Liter $ 19.00 $5.35 $ 2.10 $ 0.90 1.05 Via Gelato Actual Total for June $ 111,530 $ 33,830 $ 18,900 $ 8,100 $3,300 $ 2,050 $6,900 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 $6,300 plus $2.10 per liter of gelato sold and the actual wages for June were $18,900, 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.)…
Via Gelato is a popular nelghborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Fixed Actual Element Element per Total for Liter $ 23.00 $ 5.75 $ 2.50 $ 1.30 Jane per Month 5 140,540 37,030 $ 21,800 $11,600 $3,700 $ 2,450 $ 9,390 Revenue Rav materiale Wages Utilities $ 6,700 $2,730 $3,700 $2,450 $ 760 Rent Innurance Miscellaneoun 1.45 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. Vla Gelato expected to sell 6,100 lters in June, but actually sold 6,300 liters. Required: Calculate Via Gelato revenue and spending varlances for June. (Indicate the effect of each varlance 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 Revenue and…
Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Liter Fixed Element per Month Variable Element per Actual Total for June Revenue $ 27.00 $ 160,540 Raw materials $ 6.15 $ 38,430 Wages $ 7,100 $ 2.90 $ 24,900 Utilities $ 3,130 $ 1.70 $ 14,200 Rent $ 4,100 $ 4,100 Insurance Miscellaneous $ 2,850 $ 2,850 $ 800 $ 1.85 $ 11,790 Ch 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 $7,100 plus $2.90 per liter of gelato sold and the actual wages for June were $24,900. 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.)…
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 per Month Variable Element per Liter Actual Total for June Revenue $ 18.00 $ 110,530 Raw materials $ 5.25 $ 33,730 Wages $ 6,200 $ 2.00 $ 18,900 Utilities $ 2,230 $ 0.80 $ 7,550 Rent $ 3,200 $ 3,200 Insurance $ 1,950 $ 1,950 Miscellaneous $ 710 $ 0.95 $ 6,670 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 $6,200 plus $2.00 per liter of gelato sold and the actual wages for June were $18,900. 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…
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 Variable Element per Actual Total Liter Element per Month for June $ 31.00 $ 6.55 $ 3.30 $ 2.10 $ 191,540 $ 42,830 $ 28,000 $ 17,400 $ 4,500 $ 3,250 $ 14,690 Revenue Raw materials $ 7,500 $ 3,530 $ 4,500 $ 3,250 $ 840 Wages Utilities Rent Insurance 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 (i.e., zero variance). Input all amounts as positive values.)
Lising Therapy has a physical therapist who performs electro-mechanical treatments for its patients. During April, Lising had the following cost and output information: Required: 1. Calculate the cost per treatment for April. 2. Calculate the cost of services sold for April. 3. What if Lising found a way to reduce overhead costs by 20 percent? How would this affect the profit per treatment?
Total and Unit Product Cost Martinez Manufacturing Inc. showed the following costs for last month: Last month, 4,000 units were produced and sold. Required: 1. Classify each of the costs as product cost or period cost. 2. What is the total product cost for last month? 3. What is the unit product cost for last month?
A company sells mulch by the cubic yard. Grade A much sells for $150 per cubic yard and has variable costs of $65 per cubic yard. The company has fixed expenses of $15,000 per month. In August, the company sold 240 cubic yards of Grade A mulch. A. Calculate the contribution margin per unit for Grade A mulch. B. Calculate the contribution margin ratio of the Grade A mulch. C. Prepare a contribution margin income statement for the month of August.
Via Gelato is a popular neighborhood gelato shop. The company has provided the following data concerning its operations:Fixed Variable ActualElement Element Total forper Month per Liter JuneRevenue .......................... $12.00 $71,540Raw materials ................. $4.65 $29,230Wages ............................. $5,600 $1.40 $13,860Utilities ............................ $1,630 $0.20 $3,270Rent ................................ $2,600 $2,600Insurance ........................ $1,350 $1,350Miscellaneous ................. $650 $0.35 $2,590While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of litersof gelato sold. For example, wages should be $5,600 plus $1.40 per liter of gelato sold and the actual wagesfor June were $13,860. Via Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters.Required:Prepare a report showing Via Gelato revenue and spending variances for June.
Tom’s Shoe Repair provides a variety of shoe and repair services. Analysis of monthly costs revealed the following cost formulas when direct labor hours are used as the basis of cost determination: Supplies: y = $0 + $4.00X Production supervision and direct labor: y = $500 + $7.00X Utilities: y = $350 + $5.40X Rent: y = $450 + $0.00X Advertising: y = $75 + $0.00X a. Prepare a flexible budget at 250, 300, 350, and 400 direct labor hours. b. Calculate a total cost per direct labor hour at each level of activity. c. Tom’s employees usually work 350 direct labor hours per month. The average shoe repair requires 1.25 labor hours to complete. Tom wants to earn a 40 percent margin on his cost. What should be the average charge per customer, rounded to the nearest dollar to achieve Tom’s profit objective?
Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half of the year: Month January February March April May June Number of Appointments 300 200 500 425 350 275 Variable Cost per Unit Fixed Cost Total Cost $ 6,100 5,000 6,650 6,050 6,500 5,050 Required: Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. Note: Round your "Variable cost per unit" answer to 2 decimal places and "Fixed cost" answer to the nearest dollar amount.