Via GelatoRevenue and Spending VariancesFor the Month Ended June 30RevenueExpenses:Raw materialsWagesUtilitiesRentInsuranceMiscellaneousTotal expenseNet operating income Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for themonth of June:FixedVariableElement per Actual TotalLiterElementper Monthfor June$ 31.00$ 6.55$ 3.30$ 2.10$ 191,540$ 42,830$ 28,000$ 17,400$ 4,500$ 3,250$ 14,690RevenueRaw materials$ 7,500$ 3,530$ 4,500$ 3,250$ 840WagesUtilitiesRentInsuranceMiscellaneous$ 2.25While 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 sell6,200 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.)

Variance refers to those deviation which is used to determine the difference between the actual…

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.)

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.)

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 $ 6,300 $ 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 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.)…
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