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.)Via GelatoRevenue and Spending VariancesFor the Month Ended June 30RevenueExpenses:Raw materialsWagesUtilitiesRentInsuranceMiscellaneousTotal expenseNet operating income Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for themonth of June:Fixed ElementVariable ElementActual Totalper Liter$ 20.00$ 5.45$ 2.20$ 1.00per Monthfor June$ 122,540$ 36,030$ 20,200RevenueRaw materials$ 6,400$ 2,430$ 3,400$ 2,150$WagesUtilities$49,100Rent$43,400Insurance$2,150Miscellaneous730$ 1.15$48,050While 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 $6,400 plus $2.20 per liter of gelato sold and the actual wages for June were $20,200. Via Gelato expected to sell6,300 liters in June, but actually sold 6,500 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.)

Solution:- Calculation of the Via Gelato revenue and spending variances for June as follows under:-…

equired: alculate 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

equired: alculate 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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1PB: A company sells mulch by the cubic yard. Grade A much sells for $150 per cubic yard and has variable...

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A company sells mulch by the cubic yard. Grade A much sells for $150 per cubic yard and has variable costs of $65 per cubic yard. The company has fixed expenses of $15,000 per month. In August, the company sold 240 cubic yards of Grade A mulch. A. Calculate the contribution margin per unit for Grade A mulch. B. Calculate the contribution margin ratio of the Grade A mulch. C. Prepare a contribution margin income statement for the month of August.
A local picnic table manufacturer has budgeted the following overhead costs: They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown: Recent success has yielded an order for 1,500 tables. Determine how much the job would cost given the following activities, and assuming an hourly rate for direct labor of $25 per hour:
Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
A local picnic table manufacturer has budgeted these overhead costs: They are considering adapting ABC costing and have estimated the cost drivers for each pool as shown: Recent success has yielded an order for 1,000 tables. Assume direct labor costs per hour of $20. Determine how much the job would cost given the following activities:
Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?
Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Fixed Element per Month Variable Element per Liter Actual Total for June Revenue $ 18.00 $ 110,530 Raw materials $ 5.25 $ 33,730 Wages $ 6,200 $ 2.00 $ 18,900 Utilities $ 2,230 $ 0.80 $ 7,550 Rent $ 3,200 $ 3,200 Insurance $ 1,950 $ 1,950 Miscellaneous $ 710 $ 0.95 $ 6,670 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. 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…
Via Gelato is a popular neighborhood gelato shop. The company has provided the following data concerning its operations:Fixed Variable ActualElement Element Total forper Month per Liter JuneRevenue .......................... $12.00 $71,540Raw materials ................. $4.65 $29,230Wages ............................. $5,600 $1.40 $13,860Utilities ............................ $1,630 $0.20 $3,270Rent ................................ $2,600 $2,600Insurance ........................ $1,350 $1,350Miscellaneous ................. $650 $0.35 $2,590While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of litersof gelato sold. For example, wages should be $5,600 plus $1.40 per liter of gelato sold and the actual wagesfor June were $13,860. Via Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters.Required:Prepare a report showing Via Gelato revenue and spending variances for June.
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Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard costsystem to help control costs and has established the following standards for the Maze toy:Direct materials: 6 microns per toy at $0.50 per micronDirect labor: 1.3 hours per toy at $8 per hourDuring July, the company produced 3,000 Maze toys. Production data for the month on the toy follow:Direct materials: 25,000 microns were purchased at a cost of $0.48 per micron. 5,000 of these micronswere still in inventory at the end of the month.Direct labor: 4,000 direct labor-hours were worked at a cost of $36,000.Required:1. Compute the following variances for July:a. Direct materials price and quantity variances.b. Direct labor rate and efficiency variances.2. Prepare a brief explanation of the possible causes of each variance
Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $30 per unit and $45 is used in direct labor, while the direct material for the double is $45 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 10,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: Activity CostPools Driver EstimatedOverhead Use perTwin Use perDouble Framing Square Feet of Pine $270,000 6,000 3,000 Padding Square Feet of Quilting 230,000 130,000 100,000 Filling Square Feet of Filling 240,000 450,000 350,000 Labeling Number of Boxes 250,000 850,000 400,000 Inspection Number of Inspections 165,000 11,000 4,000 After grouping cost pools and estimating overhead and activities, Box Springs determined these rates: Purchasing (per order) $56 Utilities (per square foot) 2 Machine Setups (per machine hour) 7 Supervision (per direct labor hour)…
The Macon Company uses the high-low method to determine its cost equation. The following information was gathered for the past year: Machine Hours Direct Labor Costs Busiest month (June) 24,000 $ 282,400 Slowest month (December) 18,000 $ 220,000 If Macon expects to use 20,000 machine hours next month, what are the estimated direct labor costs?
Aero Travel Trailer Manufacturing is working on budgeting utility cost. The controller has decided that utilities are a function of the hours worked during the month. The following information is available and representative of the company’s utility costs: - Hours worked Utility cost incurred Low point 1,300 $ 903 High point 1,680 1,074 If 1,425 hours are worked in a month, total utility cost (rounded to the nearest dollar) using the high-low method should be Group of answer choices $947. $959. $954. $976.