Question: 10-2 Via Gelato is a popular neighborhood gelato s…
Via Gelato is a popular neighborhood gelato shop. The company has provided the following data concerning its operations:
| Fixed Element per Month |
Variable Element per Liter |
Actual Total for June |
||||
| Revenue | $ | 25.00 | $ | 151,540 | ||
| Raw materials | $ | 5.95 | $ | 39,030 | ||
| Wages | $ | 6,900 | $ | 2.70 | $ | 23,500 |
| Utilities | $ | 2,930 | $ | 1.50 | $ | 13,000 |
| Rent | $ | 3,900 | $ | 3,900 | ||
| Insurance | $ | 2,650 | $ | 2,650 | ||
| Miscellaneous | $ | 780 | $ | 1.65 | $ | 10,890 |
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 $6,900 plus $2.70 per liter of gelato sold and the actual wages for June were $23,500. Via Gelato expected to sell 6,200 liters in June, but actually sold 6,400 liters.
Required:
Complete the report showing 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 | ||
| Revenue and Spending Variances | ||
| For the Month Ended June 30 | ||
| Revenue | ||
| Expenses: | ||
| Raw materials | ||
| Wages | ||
| Utilities | ||
| Rent | ||
| Insurance | ||
| Miscellaneous | ||
| Total expense | ||
| Net operating income | ||
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