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Via Gelato is a popular neighborhood gelato shop

Accounting

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Via Gelato is a popular neighborhood gelato shop. The company has provided the following data concerning its operations:

 

 Fixed

Element

per MonthVariable

Element

per LiterActual

Total for

JuneRevenue  $30.00$190,540Raw materials  $6.45$42,930Wages$7,400$3.20$28,400Utilities$3,430$2.00$17,300Rent$4,400  $4,400Insurance$3,150  $3,150Miscellaneous$830$2.15$14,390 

 

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 $7,400 plus $3.20 per liter of gelato sold and the actual wages for June were $28,400. Via Gelato expected to sell 6,400 liters in June, but actually sold 6,600 liters.

 

Required:

Complete the report showing 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