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Devry Manangerial Accounting Exercise 9-17 - Gelato Supremo

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Question;Exercise 9-17 Flexible Budgets and Revenue and Spending Variances [LO1, LO3]Gelato Supremo is a popular neighborhood gelato shop. The company has provided the following data concerning its operations:FixedElementper Month VariableElementper Liter ActualTotal forJulyRevenue $ 13.50 $ 69,420 Raw materials $ 5.10 $ 26,890 Wages $ 4,800 $ 1.20 $ 11,200 Utilities $ 1,860 $ 0.15 $ 2,470 Rent $ 3,150 $ 3,150 Insurance $ 1,890 $ 1,890 Miscellaneous $ 540 $ 0.15 $ 1,390;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 $4,800 plus $1.20 per liter of gelato sold, and the actual wages for July were $11,200. Gelato Supremo expected to sell 5,000 liters in July, but actually sold 4,900 liters.;Required:Complete the report showing Gelato Supremo revenue and spending variances for July. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

 

Paper#43157 | Written in 18-Jul-2015

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