Via Gelato is a popular neighborhood gelato shop. The company has provided the following data concerning its operations:
Fixed Element per Month |
Variable Element per Liter |
Actual Total for June |
||||
Revenue | $ | 22.00 | $ | 130,540 | ||
Raw materials | $ | 5.65 | $ | 35,930 | ||
Wages | $ | 6,600 | $ | 2.40 | $ | 21,000 |
Utilities | $ | 2,630 | $ | 1.20 | $ | 10,500 |
Rent | $ | 3,600 | $ | 3,600 | ||
Insurance | $ | 2,350 | $ | 2,350 | ||
Miscellaneous | $ | 750 | $ | 1.35 | $ | 8,590 |
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 $6,600 plus $2.40 per liter of gelato sold and the actual wages for June were $21,000. Via Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters.
Required:
Complete the report showing Via Gelato revenue and spending variances for June.
Revenue and spending variance
Flexible budget | Actual | revenue and spending variance | |
revenue | 6200*22 = 136400 | 130540 | 5860 U |
Expense | |||
Raw material | 6200*5.65 = 35030 | 35930 | 900 U |
Wages | 21480 | 21000 | 480 F |
Utilities | 10070 | 10500 | 430 U |
Rent | 3600 | 3600 | 0 None |
Insurance | 2350 | 2350 | 0 None |
Miscellaneous | 9120 | 8590 | 530 F |
Total expense | 81650 | 81970 | 320 U |
Net income | 54750 | 48570 | 6180 U |
Via Gelato is a popular neighborhood gelato shop. The company has provided the following data concerning...
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 $ 30.00 $ 190,540 Raw materials $ 6.45 $ 42,930 Wages $ 7,400 $ 3.20 $ 28,400 Utilities $ 3,430 $ 2.00 $ 17,300 Rent $ 4,400 $ 4,400 Insurance $ 3,150 $ 3,150 Miscellaneous $ 830 $ 2.15 $ 14,390 While gelato...
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 $ 13.00 $ 72,540 Raw materials $ 4.75 $ 30,330 Wages $ 5,700 $ 1.50 $ 14,560 Utilities $ 1,730 $ 0.30 $ 3,800 Rent $ 2,700 $ 2,700 Insurance $ 1,450 $ 1,450 Miscellaneous $ 660 $ 0.45 $ 2,990 While gelato...
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 $ 23.00 $ 140,540 Raw materials $ 5.75 $ 37,030 Wages $ 6,700 $ 2.50 $ 21,800 Utilities $ 2,730 $ 1.30 $ 11,600 Rent $ 3,700 $ 3,700 Insurance $ 2,450 $ 2,450 Miscellaneous $ 760 $ 1.45 $ 9,390 While gelato...
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 $ 12.00 $ 71,540 Raw materials $ 4.65 $ 29,230 Wages $ 5,600 $ 1.40 $ 13,860 Utilities $ 1,630 $ 0.20 $ 3,270 Rent $ 2,600 $ 2,600 Insurance $ 1,350 $ 1,350 Miscellaneous $ 650 $ 0.35 $ 2,590 While gelato...
7. 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 $ 14.00 $ 83,540 Raw materials $ 4.85 $ 31,430 Wages $ 5,800 $ 1.60 $ 15,800 Utilities $ 1,830 $ 0.40 $ 4,500 Rent $ 2,800 $ 2,800 Insurance $ 1,550 $ 1,550 Miscellaneous $ 670 $ 0.55 $ 4,050 While...
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 $ 28.00 $ 171,540 Raw materials $ 6.25 $ 40,530 Wages $ 7,200 $ 3.00 $ 26,300 Utilities $ 3,230 $ 1.80 $ 15,000 Rent $ 4,200 $ 4,200 Insurance $ 2,950 $ 2,950 Miscellaneous $ 810 $ 1.95 $ 12,890 While gelato...
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 $ 12.00 $ 71,540 Raw materials $ 4.65 $ 29,230 Wages $ 5,600 $ 1.40 $ 13,860 Utilities $ 1,630 $ 0.20 $ 3,270 Rent $ 2,600 $ 2,600 Insurance $ 1,350 $ 1,350 Miscellaneous $ 650 $ 0.35 $ 2,590 While gelato...
Via Gelato is a popular neighborhood gelato shop. The company has provided the following data concering its operations: Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Fixed Variable Element Element per Month per Liter S29.00 S 6.35 $ 7,300 $ 3.10 $ 3,330 S 1.90 $ 4,300 $ 3,050 S 820 S 2.05 Actual Total for June $175,540 S 40,630 S 26,400 S 16,100 $ 4,300 S 3,050 S 12,990 While gelato is sold by the cone or cup, the...
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 Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Variable Element per Liter $ 12.00 $ 4.65 $ 1.40 $ 0.20 $ 5,600 $ 1,630 $ 2,600 $ 1,350 $ 650 Actual Total for June $ 71,540 $ 29, 230 $ 13,860 $ 3,270 $ 2,600 $ 1,350 $ 2,590 $ 0.35 While...
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 $ 12.00 $ 71,540 Raw materials $ 4.65 $ 29,230 Wages $ 5,600 $ 1.40 $ 13,860 Utilities $ 1,630 $ 0.20 $ 3,270 Rent $ 2,600 $ 2,600 Insurance $ 1,350 $ 1,350 Miscellaneous $ 650 $ 0.35 $ 2,590 While gelato...