Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Revenue Expenses 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 $6,700 plus $2.50 per liter of gelato sold and the actual wages for June were $21,800. Via Gelato expected to sell 6,100 liters in June, but actually sold 6,300 liters. Via Gelato Revenue and Spending Variances For the Month Ended June 30 Raw materials Fixed Variable Element Element per per Month Liter $23.00 $5.75 $ 2.50 $ 1.30 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.) Wages Utilities Rent $ 6,700 $ 2,730 $ 3,700 $ 2,450 $ 760 Insurance Miscellaneous Total expense Net operating income 1.45 Actual Total for June $ 140,540 $ 37,030 $ 21,800 $ 11,600 $ 3,700 $ 2,450 $9,390
Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Revenue Expenses 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 $6,700 plus $2.50 per liter of gelato sold and the actual wages for June were $21,800. Via Gelato expected to sell 6,100 liters in June, but actually sold 6,300 liters. Via Gelato Revenue and Spending Variances For the Month Ended June 30 Raw materials Fixed Variable Element Element per per Month Liter $23.00 $5.75 $ 2.50 $ 1.30 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.) Wages Utilities Rent $ 6,700 $ 2,730 $ 3,700 $ 2,450 $ 760 Insurance Miscellaneous Total expense Net operating income 1.45 Actual Total for June $ 140,540 $ 37,030 $ 21,800 $ 11,600 $ 3,700 $ 2,450 $9,390
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter3: Cost Behavior
Section: Chapter Questions
Problem 18E
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