Question
In: Accounting
ch 8 exer #4 Via Gelato is a popular neighborhood gelato shop. The company has provided...
ch 8 exer #4
|
Via Gelato is a popular neighborhood gelato shop. The company has provided the following data concerning its operations: |
|
Fixed Element per Month |
Variable Element per Liter |
Actual Total for June |
||||
| Revenue | $ | 19.00 | $ | 111,530 | ||
| Raw materials | $ | 5.35 | $ | 33,830 | ||
| Wages | $ | 6,300 | $ | 2.10 | $ | 18,900 |
| Utilities | $ | 2,330 | $ | 0.90 | $ | 8,100 |
| Rent | $ | 3,300 | $ | 3,300 | ||
| Insurance | $ | 2,050 | $ | 2,050 | ||
| Miscellaneous | $ | 720 | $ | 1.05 | $ | 6,900 |
|
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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 $6,300 plus $2.10 per liter of gelato sold and the actual wages for June were $18,900. Via Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters. |
| Required: |
|
Complete the report showing Via Gelato revenue and spending variances for June. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) |
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Solutions
ekkarill92 answered 1 year agoRelated Solutions
Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas...
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
Variable Element
per Liter
Actual Total
for June
Revenue
$
21.00
$
133,540
Raw
materials
$
5.55
$
37,130
Wages
$
6,500
$
2.30
$
21,300
Utilities
$
2,530
$
1.10
$
10,000
Rent
$
3,500
$
3,500
Insurance
$
2,250
$
2,250
Miscellaneous
$
740
$
1.25
$
8,790
While gelato...
Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas...
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
Variable Element
per Liter
Actual Total
for June
Revenue
$
21.00
$
133,540
Raw
materials
$
5.55
$
37,130
Wages
$
6,500
$
2.30
$
21,300
Utilities
$
2,530
$
1.10
$
10,000
Rent
$
3,500
$
3,500
Insurance
$
2,250
$
2,250
Miscellaneous
$
740
$
1.25
$
8,790
While gelato...
Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas...
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
Variable Element
per Liter
Actual Total
for June
Revenue
$
30.00
$
190,540
Raw materials
$
6.45
$
42,930
Wages
$
7,400
$
3.20
$
28,400
Utilities
$
3,430
$
2.00
$
17,300
Rent
$
4,400
$
4,400
Insurance
$
3,150
$
3,150
Miscellaneous
$
830
$
2.15
$
14,390
While gelato...
Via Gelato is a popular neighborhood gelato shop. The company has provided the following data concerning...
Via Gelato is a popular neighborhood gelato shop. The company
has provided the following data concerning its operations: Fixed
Element per Month Variable Element per Liter Actual Total for June
Revenue $ 16.00 $ 90,540 Raw materials $ 5.05 $ 31,630 Wages $
6,000 $ 1.80 $ 16,900 Utilities $ 2,030 $ 0.60 $ 6,000 Rent $ 3,000
$ 3,000 Insurance $ 1,750 $ 1,750 Miscellaneous $ 690 $ 0.75 $
5,200 While gelato is sold by the cone or...
Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas...
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
Variable Element
per Liter
Actual Total
for June
Revenue
$
27.00
$
160,540
Raw materials
$
6.15
$
38,430
Wages
$
7,100
$
2.90
$
24,900
Utilities
$
3,130
$
1.70
$
14,200
Rent
$
4,100
$
4,100
Insurance
$
2,850
$
2,850
Miscellaneous
$
800
$
1.85
$
11,790
While gelato...
ch 8 exer #6 Packaging Solutions Corporation manufactures and sells a wide variety of packaging products....
ch 8 exer #6
Packaging Solutions Corporation manufactures and sells a wide
variety of packaging products. Performance reports are prepared
monthly for each department. The planning budget and flexible
budget for the Production Department are based on the following
formulas, where q is the number of labor-hours worked in a
month:
Direct
labor
$
16.30
q
Indirect
labor
$
4,500
+
$
1.90
q
Utilities
$
5,100
+
$
0.60
q
Supplies
$
1,500
+
$
0.30
q
Equipment...
Exercise 9-16 Flexible Budgets and Revenue and Spending Variances [LO9-1, LO9-3] Via Gelato is a popular...
Exercise 9-16 Flexible Budgets and Revenue and Spending
Variances [LO9-1, LO9-3]
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
Variable Element
per Liter
Actual Total
for June
Revenue
$
12.00
$
71,540
Raw materials
$
4.65
$
29,230
Wages
$
5,600
$
1.40
$
13,860
Utilities
$
1,630
$
0.20
$
3,270
Rent
$
2,600
$
2,600
Insurance
$
1,350...
Question 4 ch 8 Lou Barlow, a divisional manager for Sage Company, has an opportunity to...
Question 4 ch 8
Lou Barlow, a divisional manager for Sage Company, has an
opportunity to manufacture and sell one of two new products for a
five-year period. His annual pay raises are determined by his
division’s return on investment (ROI), which has exceeded 24% each
of the last three years. He has computed the cost and revenue
estimates for each product as follows:
Product A
Product B
Initial investment:
Cost of equipment (zero salvage value)
$
320,000
$...
ch 16 (4) The following information is provided to assist you in evaluating the performance of...
ch 16 (4) The following information is provided to assist you in
evaluating the performance of the production operations of Studio
Company:
Units produced (actual)
53,000
Master production budget
Direct materials
$128,700
Direct labor
109,200
Overhead
173,550
Standard costs per unit
Direct materials
$1.65 × 2 gallons per unit of output
Direct labor
$14 per hour × 0.2 hour per unit
Variable overhead
$13.00 per direct labor-hour
Actual costs
Direct materials purchased and used
$127,360 (79,600 gallons)
Direct labor
132,683...
Question 2 ch 10 Milano Pizza is a small neighborhood pizzeria that has a small area...
Question 2 ch 10
Milano Pizza is a small neighborhood pizzeria that has a small
area for in-store dining as well as offering take-out and free home
delivery services. The pizzeria’s owner has determined that the
shop has two major cost drivers—the number of pizzas sold and the
number of deliveries made.
Data concerning the pizzeria’s costs appear below:
Fixed Cost
per Month
Cost per
Pizza
Cost per
Delivery
Pizza ingredients
$
4.90
Kitchen staff
$
6,230
Utilities
$
770...
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