Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Revenue Expenses: Raw materials Fixed Element per Month 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 $6,500 plus $2.30 per liter of gelato sold and the actual wages for June were $21,300. Via Gelato expected to sell 6,400 liters in June, but actually sold 6,600 liters. Via Gelato Revenue and Spending Variances For the Month Ended June 30 Wages Utilities Rent $ 6,500 $ 2,530 $ 3,500 $ 2,250 $ 740 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.) Insurance Miscellaneous Variable Element per Liter $ 21.00 $ 5.55 $ 2.30 $ 1.10 Total expense Net operating income 1.25 Actual Total for June $ 133,540 $ 37,130 $ 21,300 $ 10,000 $ 3,500 $ 2,250 $8,790

Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Revenue Expenses: Raw materials Fixed Element per Month 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 $6,500 plus $2.30 per liter of gelato sold and the actual wages for June were $21,300. Via Gelato expected to sell 6,400 liters in June, but actually sold 6,600 liters. Via Gelato Revenue and Spending Variances For the Month Ended June 30 Wages Utilities Rent $ 6,500 $ 2,530 $ 3,500 $ 2,250 $ 740 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.) Insurance Miscellaneous Variable Element per Liter $ 21.00 $ 5.55 $ 2.30 $ 1.10 Total expense Net operating income 1.25 Actual Total for June $ 133,540 $ 37,130 $ 21,300 $ 10,000 $ 3,500 $ 2,250 $8,790

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 29E: Olympus, Inc., manufactures three models of mattresses: the Sleepeze, the Plushette, and the Ultima....

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