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 $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. Raw materials Wages Utilities Rent 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.) $ 5,600 $ 1,630 $ 2,600 $ 1,350 $ 650 Insurance Miscellaneous Variable Element per Actual Total Liter $ 12.00 $ 4.65 for June $71,540 $ 29,230 $ 13,860 $ 1.40 $ 0.20 $3,270 $ 2,600 $1,350 $ 2,590 Via Gelato Revenue and Spending Variances For the Month Ended June 30 U Total expense Net operating income $ 0.35

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 $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. Raw materials Wages Utilities Rent 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.) $ 5,600 $ 1,630 $ 2,600 $ 1,350 $ 650 Insurance Miscellaneous Variable Element per Actual Total Liter $ 12.00 $ 4.65 for June $71,540 $ 29,230 $ 13,860 $ 1.40 $ 0.20 $3,270 $ 2,600 $1,350 $ 2,590 Via Gelato Revenue and Spending Variances For the Month Ended June 30 U Total expense Net operating income $ 0.35

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 61P: Method of Least Squares, Predicting Cost for Different Time Periods from the One Used to Develop a...

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Via Gelato is a popular nelghborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Fixed Actual Element Element per Total for Liter $ 23.00 $ 5.75 $ 2.50 $ 1.30 Jane per Month 5 140,540 37,030 $ 21,800 $11,600 $3,700 $ 2,450 $ 9,390 Revenue Rav materiale Wages Utilities $ 6,700 $2,730 $3,700 $2,450 $ 760 Rent Innurance Miscellaneoun 1.45 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. Vla Gelato expected to sell 6,100 lters in June, but actually sold 6,300 liters. Required: Calculate Via Gelato revenue and spending varlances for June. (Indicate the effect of each varlance 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…
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 Fixed Element per Month $ 6,300 $ 2,330 $ 3,300 $ 2,050 $ 720 Variable Element per Liter $ 19.00 $5.35 $ 2.10 $ 0.90 1.05 Via Gelato Actual Total for June $ 111,530 $ 33,830 $ 18,900 $ 8,100 $3,300 $ 2,050 $6,900 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 $6,300 plus $2.10 per liter of gelato sold and the actual wages for June were $18,900, 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. (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.)…
as 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 Fixed Element per Month $ 6,700 $ 2,730 $ 3,700 $ 2,450 $760 Variable Element per Liter $23.00 $5.75 $ 2.50 $ 1.30 Actual Total for June $ 140,540 $ 37,030 $ 21,800 $ 11,600 $ 3,700 $2,450. $9,390 1.45 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 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 is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Liter Fixed Element per Month Variable Element per Actual Total for June Revenue $ 27.00 $ 160,540 Raw materials $ 6.15 $ 38,430 Wages $ 7,100 $ 2.90 $ 24,900 Utilities $ 3,130 $ 1.70 $ 14,200 Rent $ 4,100 $ 4,100 Insurance Miscellaneous $ 2,850 $ 2,850 $ 800 $ 1.85 $ 11,790 Ch 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 $7,100 plus $2.90 per liter of gelato sold and the actual wages for June were $24,900. 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. (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.)…
Method of Least Squares, Predicting Cost for Different Time Periods from the One Used to Develop a Cost Formula Refer to the information for Farnsworth Company on the previous page. However, assume that Tracy has used the method of least squares on the receiving data and has gotten the following results: Required: 1. Using the results from the method of least squares, prepare a cost formula for the receiving activity. 2. Using the formula from Requirement 1, what is the predicted cost of receiving for a month in which 1,450 receiving orders are processed? (Note: Round your answer to the nearest dollar.) 3. Prepare a cost formula for the receiving activity for a quarter. Based on this formula, what is the predicted cost of receiving for a quarter in which 4,650 receiving orders are anticipated? Prepare a cost formula for the receiving activity for a year. Based on this formula, what is the predicted cost of receiving for a year in which 18,000 receiving orders are anticipated?
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 Liter Actual Total for June Revenue $ 18.00 $ 110,530 Raw materials $ 5.25 $ 33,730 Wages $ 6,200 $ 2.00 $ 18,900 Utilities $ 2,230 $ 0.80 $ 7,550 Rent $ 3,200 $ 3,200 Insurance $ 1,950 $ 1,950 Miscellaneous $ 710 $ 0.95 $ 6,670 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 $6,200 plus $2.00 per liter of gelato sold and the actual wages for June were $18,900. Via Gelato expected to sell 6,200 liters in June, but actually sold 6,400 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…
Tom’s Shoe Repair provides a variety of shoe and repair services. Analysis of monthly costs revealed the following cost formulas when direct labor hours are used as the basis of cost determination: Supplies: y = $0 + $4.00X Production supervision and direct labor: y = $500 + $7.00X Utilities: y = $350 + $5.40X Rent: y = $450 + $0.00X Advertising: y = $75 + $0.00X a. Prepare a flexible budget at 250, 300, 350, and 400 direct labor hours. b. Calculate a total cost per direct labor hour at each level of activity. c. Tom’s employees usually work 350 direct labor hours per month. The average shoe repair requires 1.25 labor hours to complete. Tom wants to earn a 40 percent margin on his cost. What should be the average charge per customer, rounded to the nearest dollar to achieve Tom’s profit objective?
Tracey Packaged Snax reports the following information for November: Units produced and sold Per unit revenue and costs: Sales revenue Direct materials costs Direct labor costs Variable manufacturing overhead Fixed manufacturing overhead (at 320,000 units) Variable marketing and administrative costs Fixed marketing and administrative costs (at 320,000 units) Required: a. Prepare a gross margin income statement. b. Prepare a contribution margin income statement. Complete this question by entering your ansivers in the tabs below. Required A Required B Prepare a contribution margin income statement. Contribution Margin Income Statement 320,000 $9.60 1.65 0.90 0.80 1.55 0.75 1.15
Tracey Packaged Snax reports the following information for November: Units produced and sold Per unit revenue and costs: Sales revenue Direct materials costs Direct labor costs Variable manufacturing overhead Fixed manufacturing overhead (at 320,000 units) Variable marketing and administrative costs Fixed marketing and administrative costs (at 320,000 units) Required: a. Prepare a gross margin income statement. b. Prepare a contribution margin income statement. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a gross margin income statement. Sales revenue Gross margin Gross Margin Income Statement Fixed marketing and administrative costs Operating profit $ 1,152,000 (176,000) 320,000 $ 3.60 1.05 0.30 0.20 0.95 0.15 0.55
Morning Company reports the following information for March: E (Click the icon to view the data.) Read the requirements. Requirement 1. Calculate the gross profit and operating income for March using absorption costing. Morning Company Income Statement (Absorption Costing) For the Month Ended March 31 Data Table Net Sales Revenue 67,850 Variable Cost of Goods Solłd 19,300 Operating income Fixed Cost of Goods Sold 8,400 Variable Selfing and Administrative Costs 16,500 Requirements Fixed Selling and Administrative Costs 3,800 1. Calculate the gross profit and operating income for March using absorption costing. 2. Calculate the contribution margin and operating income for March using variable costing. Print Done
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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 $ 30.00 $ 190,540 Raw materials $ 6.45 $ 42,930 Wages $ 7,400 $ 3.20 $ 28,400 Utilities $ 3,430 $ 2.00 $ 17,300 Rent $ 4,400 $ 4,400 Insurance $ 3,150 $ 3,150 Miscellaneous $ 830 $ 2.15 $ 14,390 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 $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. 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 (l.e., zero variance). Input all amounts as positive values.)…