Question
Via Gelato is a popular neighborhood gelato shop. The company has provided the following data concering...
Answers
Answer
Revenue & Spending Variance
Revenues
$ 7,160.00
U
Expenses:
Raw materials
$ 625.00
U
Wages
$ 430.00
F
Utilities
$ 800.00
U
Rent
$ -
N
Insurance
$ -
N
Miscellaneous
$ 745.00
F
Total Expenses
$ 250.00
U
Net Operating Income
$ 7,410.00
U
--Working for Flexible Budget
WORKING COLUMNS
Actual Result
Revenue & Spending Variance
Flexible Budget
Cars washed
6,300
6,300
Revenues
$ 29.00
$ 175,540.00
$ 7,160.00
U
$ 182,700.00
Expenses:
Raw materials
(
$ -
)
$ 6.35
x 6300 or 6100
$ 40,630.00
$ 625.00
U
$ 40,005.00
Wages
(
$ 7,300.00
)
$ 3.10
x 6300 or
)
$ 26,400.00
$ 430.00
F
$ 26,830.00
Utilities
(
$ 3,330.00
+
$ 1.90
x 6300 or 176900
)
$ 16,100.00
$ 800.00
U
$ 15,300.00
Rent
(
$ 4,300.00
+
$ -
x 6300 or
)
$ 4,300.00
$ -
N
$ 4,300.00
Insurance
(
$ 3,050.00
+
$ -
x 6300 or 38735
$ 3,050.00
$ -
N
$ 3,050.00
Miscellaneous
(
$ 820.00
)
$ 2.05
x 6300 or 26210
$ 12,990.00
$ 745.00
F
$ 13,735.00
Total Expenses
$ 18,800.00
$ 13.40
$ 103,470.00
$ 250.00
U
$ 103,220.00
Net Operating Income
$ 72,070.00
$ 7,410.00
U
$ 79,480.00