Question

In: Accounting

(Please show work so I can understand how you got to the answer - Thank you...

(Please show work so I can understand how you got to the answer - Thank you very much )

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 $ 13.00 $ 72,540
Raw materials $ 4.75 $ 30,330
Wages $ 5,700 $ 1.50 $ 14,560
Utilities $ 1,730 $ 0.30 $ 3,800
Rent $ 2,700 $ 2,700
Insurance $ 1,450 $ 1,450
Miscellaneous $ 660 $ 0.45 $ 2,990

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 $5,700 plus $1.50 per liter of gelato sold and the actual wages for June were $14,560. 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. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Solutions

Expert Solution

1

Via Gelato

revenue and spending variances for June

Flexible
bdget

revenue
and spending variances

Actual

Total for

June

Revenue

78000

5460

U

72540

Less:

Raw materials

28500

1830

U

30330

Wages

14700

140

F

14560

Utilities

3530

270

U

3800

Rent

2700

0

2700

Insurance

1450

0

1450

Miscellaneous

3360

370

F

2990

Total operating expases

54240

1590

U

55830

Net operating incmoe

23760

7050

U

16710

Working Notes



Related Solutions

Please show full work so that I can understand these types of problems, thank you! Complete...
Please show full work so that I can understand these types of problems, thank you! Complete the following Complex Time Value of Money problem. You are doing some long-range retirement planning. On the day you retire (23 years from now) you want to be able to withdraw $200,000. Then, you want to withdraw the following amounts at the end of each year after that (during your retirement period).                            Years 1-4            $160,000                            Years 5-9            $175,000                            Years 10-15       $165,000...
Please label everything so I understand how you got your answer. Thank you:) DeYoung Entertainment Enterprises...
Please label everything so I understand how you got your answer. Thank you:) DeYoung Entertainment Enterprises is considering replacing the latex molding machine it uses to fabricate rubber chickens with a newer, more efficient model. The old machine has a book value of $600,000 and a remaining useful life of 5 years. The current machine would be worn out and worthless in 5 years, but DeYoung can sell it now to a Halloween mask manufacturer for $265,000. The old machine...
Please show work - trying to understand how to do this so I can apply it...
Please show work - trying to understand how to do this so I can apply it to other problems. Both Professor X and Professor Y agree that students who study for their examinations do better than those who do not. Both professors teach the same class, take a careful four level ranking of how hard their students studied and give a very similar examination. This year the average score in Professor X’s class and the average score in Professor Y’s...
Please show your work so it is easier to understand, thank you! The payroll records of...
Please show your work so it is easier to understand, thank you! The payroll records of Airtech Solutions, Ltd. are provided for the period ended December 7: (See Payroll Liabilites on pages 404-406) Required: Compute the necessary information for the payroll journal entries. Complete the entry to accrue the payroll. Complete the entry to record the payroll tax expense. Employee Earnings to End of Previous Week Gross Pay Federal Income Taxes Medical Insurance Deduction Union Dues United Way R. Arthur...
Please show how you got the answers so that I can learn how to do this!...
Please show how you got the answers so that I can learn how to do this! 200.00mL of 2.00 M solution of a weak acid is mixed with 300.00 mL of a 2.00 M solution containing its conjugate base. 50.000 g of the slightly soluble salt silver acetate (AgC2H3O2) is added to this buffer solution. After thorough mixing, the solution is assumed to be saturated. To determine the amount of the solid which remains undissolved, the solution is filtered, and...
Can you please show me the work on how you get your answer please (thank you...
Can you please show me the work on how you get your answer please (thank you in advance kings and queens of chegg) Problem 1: The following selected information is provided about a manufacturing company: Raw material purchases800,000 Direct labor 415,000 Overhead applied730,000 Actual overhead745,000 Selling and administrative salaries500,000 Other selling and administrative expenses185,000 Sales revenue5,000,000 Inventory data: January 1 December 31Raw material 75,000 100,000Work in process 105,000 140,000Finished goods 120,000 125,000Calculate the cost of goods sold. Assume that under/over...
Please explain to me the answers so that I can understand the concept. Thank you! You...
Please explain to me the answers so that I can understand the concept. Thank you! You must evaluate a proposal to buy a new milling machine. The purchase price of the milling machine, including shipping and installation costs, is $126,000, and the equipment will be fully depreciated at the time of purchase. The machine would be sold after 3 years for $85,000. The machine would require a $3,500 increase in net operating working capital (increased inventory less increased accounts payable)....
(PLEASE ANSWER ALL PARTS OF THE QUESTION AND PROVIDE VARIOUS EXAMPLES SO I CAN UNDERSTAND, THANK...
(PLEASE ANSWER ALL PARTS OF THE QUESTION AND PROVIDE VARIOUS EXAMPLES SO I CAN UNDERSTAND, THANK YOU SO MUCH FOR YOUR HELP!!!) A critical difference between the Absorption Approach and the Elasticities Approach to the effect of a devaluation on the Current Account is the addition of income effects. How will income effects alter the effect of a devaluation, and does this tend to make it more or less difficult for a devaluation to strengthen the current account under the...
Please show how work on how you got this answer. Q1: What will be the pressure...
Please show how work on how you got this answer. Q1: What will be the pressure (in mmHg) inside of a 50.0 L container that holds 7.00 moles of hydrogen gas at 0.0 C? Q2: Oxygen Gass is produced for use in a small-scale experiment by the catalytic decomposition of hydrogen peroxide: 2 H2O2 (aq) -------------------> 2 H2O (l) + O2 (g) If 50.0 mL of a 1.00 M solution of H2O2 completely decomposes and what volume of dry oxygen...
Please Show all work please so I can understand. Given the following information, find the profits...
Please Show all work please so I can understand. Given the following information, find the profits you can make using covered interest arbitrage. Assume you can borrow either EUR 100,000 or JPY 14,619,883.04 EUR interest rate = 3.5% per year JPY interest rate = 0.4530% per year S (EUR/JPY) = EUR 0.00684 per JPY F (EUR/JPY) = EUR 0.0074 per JPY for 1 year maturity forward contract a. Which currency would you borrow to conduct covered-interest arbitrage? b. Assume you...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT