Via Gelato, a popular neighborhood gelato shop, provided the following cost formulas and actual results for the
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Question:
Via Gelato, a popular neighborhood gelato shop, 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 $ $
Raw materials $ $
Wages $ $ $
Utilities $ $ $
Rent $ $
Insurance $ $
Miscellaneous $ $
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 $ plus $ per liter of gelato sold and the actual wages for June were $ Via Gelato expected to sell liters in June but actually sold liters.
Required:
Calculate Via Gelato's revenue and spending variances for June.
Note: Indicate the effect of each variance by selecting F for favorable, U for unfavorable, and "None" for no effect ie zero variance Input all amounts as positive values.
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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