elato is a popular neighborhood gelato shop The company os o

elato is a popular neighborhood gelato shop. The company os operations: Element Ement Tota for per nth per Liter Revenue $12.00 $71540 Wages Utilities $5,600 $1,630 $2,600 $4.65$29230 $140 $13860 $0.20 $3.270 $2500 $1,350 $1 350 $650 $0.35 $2590 MiscellaneouS le gelato is sold by the cone or cup, the shop measures its activity in terms of the total m sold. For example, wages should be $5,600 plus $1.40 per liter of gelato sold and the actual $13,860. Via Gelato expected to sell 6,000 liters in June, but actually sold 6200 liters

Solution

Answer 1. Via Gelato Revenue & Spending Variances For the Month Ended June 30 Actual Flexible Revenue & Spending Variance Liters (q)      6,200.00      6,200.00 Revenue ($12q)    71,540.00    74,400.00    2,860.00 (U) Expenses Raw Materials ($4.65q)    29,230.00    28,830.00       400.00 (U) Wages ($5,600 + $1.40q)    13,860.00    14,280.00       420.00 (F) Utilities ($1,630 + $0.20q)      3,270.00      2,870.00       400.00 (U) Rent ($2,600)      2,600.00      2,600.00                 -   Insurance ($1,350)      1,350.00      1,350.00                 -   Miscellaneous ($650 + $0.35q)      2,590.00      2,820.00       230.00 (F) Total Expenses    52,900.00    52,750.00       150.00 (U) Net Operating Income    18,640.00    21,650.00    3,010.00 (U)