Via Gelato is a popular neighborhood gelato shop The company

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 $ 7,188 $ 3,138 4,1e0 2,85e $ 888 Variable Element per Liter s 27.88 $ 6.15 $ 2.90 $ 1.78 Actual Total for June 16e,548 $ 38,438 $ 24,9e8 14,288 S 4,180 $2,850 $ 11,798 $ 1.85 Whle 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 $7100 plus $290 per lter of gelato sold and the actual wages for June were $24,900. Vla Gelato expected to sell 6,000 liters In June, but actually sold 6,200 liters. Requlred Calculate Vla Gelato revenue and spending varlances for June. (Indicate the effect of each varlance by selecting \"F\" for favorable \"U\" for unfavorable, and \"None\" for no effect (l.e., zero varlance). Input all amounts as posltlve values.) Via Gelato Revenue and Spending Variances For the Month Ended June 30 Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Total expense Net operating income

Solution

Calculate revenue and spending variance :

Revenue and spending variance
For the month ended June 30
Revenue :	6860	U
Expenses :
Raw materials	300	U
Wages	180	F
Utilities	530	U
Rent	None
Insurance	None
Miscellaneous	480	F
Total expense	170	U
Net operating income	7030	U