Via Gelato is a popular neighborhood gelato shop. The company has provided the f

Question

Via Gelato is a popular neighborhood gelato shop. The company has provided the following data concerning its operations:

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 $6,200 plus $2.00 per liter of gelato sold and the actual wages for June were $18,900. Via Gelato expected to sell 6,200 liters in June, but actually sold 6,400 liters.

Via Gelato is a popular neighborhood gelato shop. The company has provided the following data concerning its operations:

Required: Complete the report showing Via Gelato revenue and spending variances for June. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance).) Vla Gelato Revenue and Spending Variances For the Month Ended June 30 Revenue Raw materials Wages Rent Insurance Miscellaneous Total expense Net operating income

Explanation / Answer

Explanation Via Gelato Revenue and Spending Variances For the Month Ended June 30 Actual Results Flexible Budget Revenue and Spending Variances Pounds 6400 6400 Revenue 110,530 115200 4,670 U Expenses Packing Supplies 33,730 33600 130 U Oyster bed maintenance 18,900 19,000 100 F Wages and salaries 7,550 7,350 200 U Shipping 3,200 3,200 0 None Utilities 1,950 1,950 0 None Other 6,670 6,790 120 F Total expense 72000 71890 110 U Net operating income 38530 43310 4,780 U Via Gelato Revenue and Spending Variances For the Month Ended June 30 Revenue 4,670 U Expenses Packing Supplies 130 U Oyster bed maintenance 100 F Wages and salaries 200 U Shipping 0 F Utilities 0 F Other 120 U Total expense 110 U Net operating income 4,780 U

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