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

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 $4,800 plus $1.20 per liter of gelato sold, and the actual wages for July were $11,200. Gelato Supremo expected to sell 5,000 liters in July, but actually sold 4,900 liters.

Required:
Prepare a report showing Gelato Supremo revenue and spending variances forJuly.

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Fixed Variable Actual Element Element Total for per Month per Liter July Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous $13.50 $69,420 $5.10 $26,890 $4,800 $1.20 $11,200 $0.15 $2,470 $3,150 $1,890 $0.15 $1,390 $1,860 $3,150 $1,890 $540