Via Gelato is a popular nelghborhood gelato shop. The company has provided the following cost formulas and actual results for themonth of June:FixedActualElement Element per Total forLiter$ 23.00$ 5.75$ 2.50$ 1.30Janeper Month5 140,54037,030$ 21,800$11,600$3,700$ 2,450$ 9,390RevenueRav materialeWagesUtilities$ 6,700$2,730$3,700$2,450$ 760RentInnuranceMiscellaneoun1.45While 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 $21,800. Vla Gelato expected to sell6,100 lters in June, but actually sold 6,300 liters.Required:Calculate Via Gelato revenue and spending varlances for June. (Indicate the effect of each varlance by selecting "F" for favorable,"U" for unfavorable, and "None" for no effect (I.e., zero variance). Input all amounts as positive values.)Via GelatoRevenue and Spending VariancesForthe Month Ended Junn 30 Via GelatoRevenue and Spending VarlancesFor the Month Ended June 30Revenue$(4,360) UExpenses:Raw materials(805) UWagesesUtilitiesRentInsuranceMiscellaneousTotal expenseNet operating income

Revenue and Spending variance Revenue and spending variances (sometimes called flexible budget…

Answered: Required: Calculate Via Gelato revenue…

Required: Calculate Via Gelato revenue and spending variances for June. (l "U" for unfavorable, and "None" for no effect (I.e., zero varlance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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 Spending Variances
Forthe Month Ended Junn 30

Via Gelato
Revenue and Spending Varlances
For the Month Ended June 30
Revenue
$(4,360) U
Expenses:
Raw materials
(805) U
Wages
es
Utilities
Rent
Insurance
Miscellaneous
Total expense
Net operating income

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