Please provide answer in text (Without image) and show calculation 1Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for themonth of June:RevenueRaw materialsWagesUtilities.RentInsuranceMiscellaneousRevenueExpenses: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 $7,300 plus $3.10 per liter of gelato sold and the actual wages for June were $26,400. Via Gelato expected to sell6,100 liters in June, but actually sold 6,300 liters.Raw materialsFixedElementper MonthRequired:Calculate Via Gelato revenue and spending variances for June. (Indicate the effect of each variance by selecting "F" for favorable,"U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)Via GelatoRevenue and Spending VariancesFor the Month Ended June 30WagesUtilitiesRent$ 7,300$ 3,330$ 4,300$ 3,050$ 820InsuranceMiscellaneousVariableActualElement per Total forJuneLiter$29.00$ 6.35$ 175,540$ 40,630$ 3.10$ 26,400$ 1.90$ 16,100$ 4,300$ 3,050$ 12,990Total expenseNet operating income2.05

Revenue and spending variance is the difference between actual results and flexible budget data.…

Answered: Via Gelato is a popular neighborhood…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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