Gelato supremo is a popular neighborhood gelato shop the

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Reference no: EM13483616

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
   $ 13.60    $ 71,280    
  Raw materials

$ 4.50    $ 24,420    
  Wages $ 4,700    $ 1.10    $ 10,750    
  Utilities $ 1,860    $ 0.10    $ 2,231    
  Rent $ 3,110   

$ 3,110    
  Insurance $ 1,890   

$ 1,890    
  Miscellaneous $ 550    $ 0.10    $ 1,168    

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 $4,700 plus $1.10 per liter of gelato sold, and the actual wages for July were $10,750. Gelato Supremo expected to sell 5,100 liters in July, but actually sold 5,000 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 $ $ $      





  Expenses:



     Raw materials      
     Wages      
     Utilities      
     Rent      
     Insurance      
     Miscellaneous      





  Total expense      





  Net operating income $ $ $      








Reference no: EM13483616

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