Gelato Supremo 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
July
|
|
Revenue
|
|
|
$
|
13.70
|
$
|
73,140
|
|
Raw materials
|
|
|
$
|
4.50
|
$
|
24,860
|
|
Wages
|
$
|
4,800
|
$
|
1.10
|
$
|
10,920
|
|
Utilities
|
$
|
1,830
|
$
|
0.10
|
$
|
2,214
|
|
Rent
|
$
|
3,200
|
|
|
$
|
3,200
|
|
Insurance
|
$
|
1,940
|
|
|
$
|
1,940
|
|
Miscellaneous
|
$
|
540
|
$
|
0.10
|
$
|
1,169
|
| |
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 $4,800 plus $1.10 per liter of gelato sold, and the actual wages for July were $10,920. Gelato Supremo expected to sell 5,200 liters in July, but actually sold 5,100 liters.
Required:
Prepare a report showing Gelato Supremo revenue and spending variances for July. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
|
Gelato Supremo
Revenue and Spending Variances
For the Month Ended July 31
|
| |
Flexible
Budget
|
Actual
Results
|
Revenue and Spending
Variances
|
|
Revenue
|
$
|
$
|
$
|
(Click to select)UFNone
|
| |
|
|
|
|
|
Expenses:
|
|
|
|
|
|
Raw materials
|
|
|
|
(Click to select)FUNone
|
|
Wages
|
|
|
|
(Click to select)UFNone
|
|
Utilities
|
|
|
|
(Click to select)FUNone
|
|
Rent
|
|
|
|
(Click to select)UNoneF
|
|
Insurance
|
|
|
|
(Click to select)NoneUF
|
|
Miscellaneous
|
|
|
|
(Click to select)UFNone
|
| |
|
|
|
|
|
Total expense
|
|
|
|
(Click to select)NoneFU
|
| |
|
|
|
|
|
Net operating income
|
$
|
$
|
$
|
(Click to select)FUNone
|