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ezto.mheducation.com/hm.tpx Via Gelato is a popular neighborhood gelato shop. Th

ID: 2572975 • Letter: E

Question

ezto.mheducation.com/hm.tpx Via Gelato is a popular neighborhood gelato shop. The company has provided the following data conceming its operations: Element Element Total for per Month per June Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous 31.00 $191,540 $ 6.55 $ 42,830 $7,500 $ 3.30 28,000 $ 3,530 $ 2.10 $ 17,400 $ 4,500 S 3,250 S 840 2.25 S 14,690 $ 4,500 $ 3,250 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 iters in June, but actually sold 6,400 liters 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 "Nons" for no effect (i.e., zero variance)-) Via Gelato Revenue and Spending Variances For the Month Ended June 30 Revenue 6,860 Expenses: Raw materials Wages Utilties Rent Insurance Miscellaneous 910 Total expense Net operating income References Book& Resources Type here to search aoe!

Explanation / Answer

Solution:

Revenue and spending variance

For the month ended June 30

Working

Revenue

6860

U

(6400 * 31) - 191540

Expenses

Raw materials

910

U

(6400 * 6.55) - 42830

Wages

620

F

(7500 + 6400*3.30)-28000

Utilities

430

F

(3530 + 6400*2.10)-17400

Rent

0

None

Insurance

0

None

Miscellaneous

550

F

(840 + 6400*2.25) -14690

Total expense

170

U

Net operating income

7030

U

Working:

Flexible

Actual

Diff

Revenue

198400

191540

6860

U

Expenses

Raw materials

41920

42830

-910

U

Wages

28620

28000

620

F

Utilities

16970

17400

-430

U

Rent

4500

4500

0

None

Insurance

3250

3250

0

None

Miscellaneous

15240

14690

550

F

Total expense

110500

110670

-170

U

Net operating income

87900

80870

7030

U

Revenue and spending variance

For the month ended June 30

Working

Revenue

6860

U

(6400 * 31) - 191540

Expenses

Raw materials

910

U

(6400 * 6.55) - 42830

Wages

620

F

(7500 + 6400*3.30)-28000

Utilities

430

F

(3530 + 6400*2.10)-17400

Rent

0

None

Insurance

0

None

Miscellaneous

550

F

(840 + 6400*2.25) -14690

Total expense

170

U

Net operating income

7030

U