Exercise 9-15 (Algo) Flexible Budgets and Revenue and Spending Variances [LO9-1, LO9-3] Via Gelato, a popular neighborhood gelato shop, provided the following cost formulas and actual results for the month of June: Fixed Variable Element per Element per Actual Total Month Liter for June Revenue $ 23.00 $ 140,540 Raw materials $ 5.75 $ 37,030 Wages Utilities $ 6,700 $ 2.50 $ 21,800 $ 2,730 $ 1.30 $ 11,600 CES Rent $ 3,700 Insurance $ 2,450 Miscellaneous $ 760 1.45 $ 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's revenue and spending variances for June. Note: 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.
Exercise 9-15 (Algo) Flexible Budgets and Revenue and Spending Variances [LO9-1, LO9-3] Via Gelato, a popular neighborhood gelato shop, provided the following cost formulas and actual results for the month of June: Fixed Variable Element per Element per Actual Total Month Liter for June Revenue $ 23.00 $ 140,540 Raw materials $ 5.75 $ 37,030 Wages Utilities $ 6,700 $ 2.50 $ 21,800 $ 2,730 $ 1.30 $ 11,600 CES Rent $ 3,700 Insurance $ 2,450 Miscellaneous $ 760 1.45 $ 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's revenue and spending variances for June. Note: 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 9-15 (Algo) Flexible Budgets and Revenue and Spending Variances [LO9-1, LO9-3]
Via Gelato, a popular neighborhood gelato shop, provided the following cost formulas and actual results for the month of June:
Fixed
Variable
Element per Element per
Actual Total
Month
Liter
for June
Revenue
$ 23.00
$ 140,540
Raw materials
$ 5.75
$ 37,030
Wages
Utilities
$ 6,700
$ 2.50
$ 21,800
$ 2,730
$ 1.30
$ 11,600
CES
Rent
$ 3,700
Insurance
$ 2,450
Miscellaneous
$ 760
1.45
$ 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's revenue and spending variances for June.
Note: 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F14b16c9b-183e-45b6-82bd-24f43d143a36%2Fd97c6a56-f27c-4908-8faf-5eaa30c767eb%2Fftpfh8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 9-15 (Algo) Flexible Budgets and Revenue and Spending Variances [LO9-1, LO9-3]
Via Gelato, a popular neighborhood gelato shop, provided the following cost formulas and actual results for the month of June:
Fixed
Variable
Element per Element per
Actual Total
Month
Liter
for June
Revenue
$ 23.00
$ 140,540
Raw materials
$ 5.75
$ 37,030
Wages
Utilities
$ 6,700
$ 2.50
$ 21,800
$ 2,730
$ 1.30
$ 11,600
CES
Rent
$ 3,700
Insurance
$ 2,450
Miscellaneous
$ 760
1.45
$ 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's revenue and spending variances for June.
Note: 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.
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