Answer Happy

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 Revenue Expenses: Fixed Element per Month Raw materials $ 7,500 $ 3,530 $ 4,500 $3,250 $ 840 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. Via Gelato Revenue and Spending Variances For the Month Ended June 30 Wages Utilities Rent Variable. Element per Liter $31.00 $ 6.55 $ 3.30 $ 2.10 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.) Insurance Miscellaneous 2.25 Actual Total for June $191,540 $ 42,830 $ 28,000 $ 17,400 $4,500 $3,250 $ 14,690
Rent Insurance. Miscellaneous 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. Via Gelato Revenue and Spending Variances For the Month Ended June 30 Revenue Expenses: 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.) Raw materials $ 4,500 $3,250 $ 840 Wages Utilities Rent Insurance Miscellaneous 2.25 Total expense Net operating income $ 4,500 $3,250 $ 14,690 Check