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 Actual Total Liter for June Revenue $ 24.00 $ 150,540 Raw materials $ 5.85 $ 38,930 Wages $ 6,800 $ 2.60 $ 23,700 Utilities $ 2,830 $ 1.40 $ 12,400 Rent $ 3,800 $ 3,800 Insurance $ 2,550 $ 2,550 Miscellaneous $ 770 $ 1.55 $ 10,790 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 $6,800 plus $2.60 per liter of gelato sold and the actual wages for June were $23,700. Via Gelato expected to sell 6,400 liters in June, but actually sold 6,600 liters. Required: Calculate 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.) Revenue Expenses Via Gelato Revenue and Spending Variances For the Month Ended June 30 Raw materials Wages Utilities Rent Insurance Miscellaneous Total expense Net operating income

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 Actual Total Liter for June Revenue $ 24.00 $ 150,540 Raw materials $ 5.85 $ 38,930 Wages $ 6,800 $ 2.60 $ 23,700 Utilities $ 2,830 $ 1.40 $ 12,400 Rent $ 3,800 $ 3,800 Insurance $ 2,550 $ 2,550 Miscellaneous $ 770 $ 1.55 $ 10,790 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 $6,800 plus $2.60 per liter of gelato sold and the actual wages for June were $23,700. Via Gelato expected to sell 6,400 liters in June, but actually sold 6,600 liters. Required: Calculate 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.) Revenue Expenses Via Gelato Revenue and Spending Variances For the Month Ended June 30 Raw materials Wages Utilities Rent Insurance Miscellaneous Total expense Net operating income

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 27BEB: Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output Refer...

See similar textbooks

Similar questions

Exercise 9-15 (Algo) 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: Revenue Raw materials Wages Utilities Rent Insurance Miscellaneous Revenue Expenses: 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 $7,400 plus $3.20 per liter of gelato sold and the actual wages for June were $28,400. Via Gelato expected to sell 6,400 liters in June, but actually sold 6,600 liters. Raw materials Fixed Element per Month Required: Calculate 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.) Via Gelato Revenue and Spending Variances For the Month Ended June 30…
Exercise 9-15 (Algo) Flexible Budgets and Revenue and Spending Variances [LO9-1, LO9-3] Via Gelato, a popular neighborhood gelato shop, provided the following cost formulas and actual results for the month of June: Fixed Variable Element per Element per Actual Total Month Liter for June Revenue $ 23.00 $ 140,540 Raw materials $ 5.75 $ 37,030 Wages Utilities $ 6,700 $ 2.50 $ 21,800 $ 2,730 $ 1.30 $ 11,600 CES Rent $ 3,700 Insurance $ 2,450 Miscellaneous $ 760 1.45 $ 3,700 $ 2,450 $9,390 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 $6,700 plus $2.50 per liter of gelato sold and the actual wages for June were $21,800. Via Gelato expected to sell 6,100 liters in June but actually sold 6,300 liters. Required: Calculate Via Gelato's revenue and spending variances for June. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for…
Refer to Cornerstone Exercise 8.6. Required: 1. Calculate the total budgeted cost of units produced for Play-Disc for the coming year. Show the cost of direct materials, direct labor, and overhead. 2. Prepare a cost of goods sold budget for Play-Disc for the year. 3. What if the beginning inventory of finished goods was 75,200 (for 16,000 units)? How would that affect the cost of goods sold budget? (Assume Play-Disc uses the FIFO method.) Play-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following manufacturing costs: For the coming year, Play-Disc expects to make 300,000 plastic discs, and to sell 285,000 of them. Budgeted beginning inventory in units is 16,000 with unit cost of 4.75. (There are no beginning or ending inventories of work in process.) Required: 1. Prepare an ending finished goods inventory budget for Play-Disc for the coming year. 2. What if sales increased to 290,000 discs? How would that affect the ending finished goods inventory budget? Calculate the value of budgeted ending finished goods inventory.
Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output Refer to the information for Speedy Petes above. Assume that this information was used to construct the following formula for monthly delivery cost. TotalDeliveryCost=41,850+(12.00NumberofDeliveries) Required: Assume that 3,000 deliveries are budgeted for the following month of January. Use the total delivery cost formula for the following calculations: 1. Calculate total variable delivery cost for January. 2. Calculate total delivery cost for January.
TB MC Qu. 16-41 (Algo) James Manufacturing has the following... James Manufacturing has the following information available for July: Actual Results Flexible Budget Variance Flexible Budget Sales Activity Variance Master Budget Units 15,000 ? 2,000 U ? Sales revenue ? $ 16,000 F ? ? ? Less: Variable manufacturing costs $ 92,750 $ 104,000 ? $ 145,000 Variable marketing and administrative ? $ 2,750 U ? $ 3,500 F $ 50,000 Contribution margin $ 69,000 ? ? $ 8,000 U ? What was James’s flexible budget sales revenue for July? Multiple Choice $161,000 $195,000 $211,000 $221,000
TB MC Qu. 16-40 (Algo) James Manufacturing has the following... James Manufacturing has the following information available for July: Actual Results Flexible Budget Variance Flexible Budget Sales Activity Variance Master Budget Units 11,500 ? 4,000 U ? Sales revenue ? $ 14,000 F ? ? ? Less: Variable manufacturing costs $ 88,750 $ 93,000 ? $ 113,000 Variable marketing and administrative ? $ 6,250 U ? $ 7,000 F $ 34,000 Contribution margin $ 53,000 ? ? $ 6,400 U ? What was James’s actual sales revenue for July? Multiple Choice $207,000 $175,000 $217,000 $161,000
Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company's expected costs: Fixed Cost Cost per Car Washed $0.90 per Month Cleaning supplies Electricity Maintenance $ 3,450 0.30 0.50 6,600 10,200 4,000 3,740 Wages and salaries Depreciation 0.60 Rent Administrative expenses 0.07 For example, electricity costs are $3,450 per month plus $0.30 per car washed. The company expects to wash 9,900 cars in October and to collect an average of $7.80 per car washed. Auto Lavage's actual level of activity was 10,000 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 10,000 $79,900 Actual cars washed Sales Variable expenses: Cleaning supplies Electricity 9,850 3,082 4,525 6,250 Maintenance Wages and salaries Administrative Fixed expenses: Electricity Wages and salaries Depreciation 790 3,540 6,600 10,200 Rent 4,000…
LO.4 & Lo.5 (High-ow method; flexible budget) Tijuana Tile has gathered thefollowing information on its utilitv cost for the past six months. Machine hours Utility cost 1,300 940 1,700 1,075 1,250 900 1,800 1,132 1,900 1,160 1,500 990 a. Using the high-low method, determine the cost formula for utility cost.b. Prepare a flexible budget with separate variable and fixed categories for utdlity costat 1,325, 1,500, and 1,675 machine hours.
Flexible Budgets and Revenue and Spending Variances Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: 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 $5,600 plus $1.40 per liter of gelato sold and the actual wages for June were $13,860. Via Gelato expected to sell 6,000 liters in June, but actually sold 6,200 liters. Required: Calculate Via Gelato revenue and spending variances for June. (Hint: Refer to Exhibit 9–7.) Exhibit 9–7 Revenue and Spending Variances from Comparing Actual Results to the Flexible Budget
Practice problem 2. MajorNet makes high-speed Internet connectors • Static budget: o Budgeted variable costs = $145/connector o Budgeted fixed costs = $7,500/month o Based on production and sales of 100 connectors in November • Actually, produced and sold 84 connectors • Actual total cost = $21,000 1) Total flexible budget cost for 84 connectors/month 2-1) Sales volume variance for total cost 2-2) Is this variance good news? 3-1) Flexible budget variance for total cost = 3-2) Is this variance good news? =
Performance Evaluation; Ch CABILIDE 1o (Migu, riepanny envie vuugel pervane repicuri Lewis Company reports the following fixed budget and actual results for May. Prepare a flexible budget performance report showing variances between budgeted and actual results. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Sales (units produced and sold) Sales (in dollars) Variable costs Fixed costs For Month Ended May 31 Sales Variable costs Contribution margin Fixed costs Income Fixed Budget 1,240 $ 500 per unit $ 200 per unit $ 131,000 LEWIS COMPANY Flexible Budget Performance Report Flexible Budget Actual Results Variances (1,440 units) (1.440 units)
S TB MC Qu. 16-41 (Algo) James Manufacturing had the following... James Manufacturing had the following information available for July: Actual Results 13,300 Units Sales revenue Less: Variable manufacturing costs Variable marketing and administrative Contribution margin What was James's flexible budget contribution margin for July? ere to search Multiple Choice $52,600 $50 750 O $ 90,750 ? $ 52,600 ? Sales Activity Variance 3,350 U ? $ 4,150 F $ 6,150 U Master Budget ? ? $ 123,900 $30,300 ? 37°F Cloudy ^-4