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).)
|