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 cost formulas and actual results for the month of June:

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 $5,800 plus $1.60 per liter of gelato sold and the actual wages for June were $15,800. Via Gelato expected to sell 6,200 liters in June, but actually sold 6,400 liters.

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.)

(Sorry I couldnt figure out how to crop the image)

Thanks for your help!

Fixed Element
per Month Variable Element
per Liter Actual Total
for June Revenue $ 14.00 $ 83,540 Raw materials $ 4.85 $ 31,430 Wages $ 5,800 $ 1.60 $ 15,800 Utilities $ 1,830 $ 0.40 $ 4,500 Rent $ 2,800 $ 2,800 Insurance $ 1,550 $ 1,550 Miscellaneous $ 670 $ 0.55 $ 4,050 eSecre ht newconnectmhaducation.com/f ?|?? Ch. 9: Homework Help Save&Exit; Submit Check my work 2 Via Gelato is a popuiar neighborhood gelato shop. The company nas provicled the tollowing cost onmulas and actual results for the manth of lune pont 21,s while ?elato 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 $5 800 plus $160 p rimr of gelato sold ?nd tme netual wnges for June were $15800 Vla Gelato experted tn sell 6.200 iters ii June, but acually sold 6,400 liters. Calculate Via Gelato revenue and spending vañances tor June. (Indicate the effect of each verience by selecting "F' for fevoreble "U" for unfavorable, and "Nona" for no offect(i..., zaro varianca). Input all amounts positive values) Revenue and Spending Variances For the Month Lnded June 30 wages Rent Insurance Tocal apansa Nct oparang ncme O lype hene to search

Explanation / Answer

Revenue and spending variance :

Revenue 6060 U Expense Raw materials 390 U Wages 240 F Utilities 110 U Rent 0 None Insurance 0 None Miscellaneous 140 F Total expense 120 U Net operating income 6180 U

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