Flexible Budgets and Revenue and Spending Variances

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:

Fixed
Element
per Month Variable
Element
per Liter Actual
Total for
July
Revenue $ 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

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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.)