Mukhi Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for themonth of June:RevenueRaw materialsWagesUtilitiesRentInsurance.MiscellaneousRevenueExpenses:FixedElementper Month0.95While 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 $18,900. Via Gelato expected to sell6,200 liters in June, but actually sold 6,400 liters.Raw materials$ 6,200$ 2,230$ 3,200$ 1,950$ 710Required: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 30WagesUtilitiesRentInsuranceMiscellaneousVariableElement perLiter$18.00$5.25$ 2.00$0.80Total expenseNet operating incomeActualTotal forJune$ 110,530$33,730$ 18,900$ 7,550$ 3,200$ 1,950$ 6,670

Name: Mukhi Via Gelato is a popular neighborhood gelato shop. The company ha
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Description: Mukhi Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for themonth of June:RevenueRaw materialsWagesUtilitiesRentInsurance.MiscellaneousRevenueExpenses:FixedElementper Month0.9

Variances are the values that are used to measure the difference between the standard and actual…

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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: Fixed Element per Month Raw materials $ 6,200 $ 2,230 $ 3,200 1,950 $ 710 $ Via Gelato Revenue and Spending Variances For the Month Ended June 30 Wages Utilities Rent Insurance Miscellaneous Variable Element per Liter $ 18.00 $5.25 $ 2.00 $ 0.80 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. Total expense Net operating income 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.) 0.95 Actual Total for June $ 110,530 $ 33,730 $ 18,900. $ 7,550 $ 3,200 $ 1,950 $ 6,670

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: Fixed Element per Month Raw materials $ 6,200 $ 2,230 $ 3,200 1,950 $ 710 $ Via Gelato Revenue and Spending Variances For the Month Ended June 30 Wages Utilities Rent Insurance Miscellaneous Variable Element per Liter $ 18.00 $5.25 $ 2.00 $ 0.80 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. Total expense Net operating income 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.) 0.95 Actual Total for June $ 110,530 $ 33,730 $ 18,900. $ 7,550 $ 3,200 $ 1,950 $ 6,670

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are...

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