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 $6,900 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.

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 (i.e., zero variance).)

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

Explanation / Answer

Complete the report showing Via Gelato revenue and spending variances for June.

Actual Flexible budget Revenue and spending variance Revenue 151540 160000 8460 U Expense Raw materials 39030 38080 950 U Wages 23500 24180 680 F Utilities 13000 12530 470 U Rent 3900 3900 none Insurance 2650 2650 None Miscellaneous 10890 11340 450 F Total expense 92970 92680 290 U Net operating income 58570 67320 8750 U

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