Accounting Homework Help

Accounting Homework Help

ATTACHMENT PREVIEW

Download attachment

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
Reven
ue
$ 13.60
$
73,970
Raw
material
s
$
4.50
$
25,330
Wages
$ 4,900
$
1.10
$
11,160
Utilitie
s
$ 1,840
$
0.10
$2,231
Rent
$ 3,120
$3,120
Insura
nce
$ 1,980
$1,980
Miscell
aneous
$
540
$
0.10
$1,177
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 $4,900 plus $1.10 per liter of gelato sold, and the
actual wages for July were $11,160. Gelato Supremo expected to sell 5,300 liters in July, but actually
sold 5,200 liters.
Prepare a 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).)
Gelato Supremo
Revenue and Spending Variances
For the Month Ended July 31
Flexible
Budget
Actual
Results
Revenue and Spending
Variances
Revenue
$
$
$
Expenses:
Raw materials
Wages
Utilities
Rent
Insurance
Miscellaneous
Total expense
Net operating
income
$
$
$
Triway Packaging Corporation manufactures and sells a wide variety of packaging products.

Unlock Solution Unlocking…

Performance reports are prepared monthly for each department. The planning budget and flexible budget
for the Production Department are based on the following formulas, where q is the number of direct
labor-hours worked in a month:
Direct
labor
$
16.40
q
Indirec
t labor
$
4,500
+
$
1.50
q
Utilitie
s
$
5,100
+
$
0.70
q
Suppli
es
$
1,400
+
$
0.40
q
Equip
ment
depreci
ation
$ 18,400
+
$
3.00
q
Factor
y rent
$
8,600
Proper
ty taxes
$
2,700
Factor
y
administ
ration
$ 13,500
+
$
0.60
q
The actual costs incurred in November in the Production Department are listed below:
Actual Cost Incurred
in November
Direct labor
$
68,840
Indirect labor
$
10,130
Utilities
$
8,500
Supplies
$
3,330
Equipment
depreciation
$
30,700
Factory rent
$
9,000
Property taxes
$
2,700
Factory
administration
$
15,310
1.
The company had budgeted for an activity level of 4,300 labor-hours in November. Prepare the
Production Department’s planning budget for the month.
Triway Packaging Corporation
Production Department Planning Budget
For the Month Ended November 30
Direct labor
$
Indirect labor
Utilities
Supplies
Equipment depreciation
Factory rent
Property taxes
Factory administration

Show entire document

Leave a Comment