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Question

xScience ABC ? eztomheducation.com/hmtpx Apps w Canvas ? Academica . Mail HW ? Apple Bing G Google?,ahoo How Mar 2.00 points Exercise 8-2 Prepare a Report Showing Revenue and Spending Variances [LO8-2] Quicene Oystenia farms and sels oysters in the Paciic Northwest. The company harvested and sold 7,400 pounds of oysters in August. The company's fexible budget for Auguat appears below Flexble Budget For the Month Ended August 31 Actual pounds (al Revenue (34.104) 7.400 30,340 Packing supplies (50.30g) Oyster bed maintenance (53.400) Wages and salaries ($2,300 $0.35q) Shipping ($0 55q) Utties (51,270 2.220 3,400 4800 4,070 1270 (5460 $0.014) Total expense 16,344 Net operating income 13.956 The actual resuits for August appear below Packing supplios Oyster bed maintenance Wages and salaries 6.984 9.016 Net operating inoome Required O Type here to search

Explanation / Answer

Quilcene Oysteria

Revenues and Spending Variance

For the Month ended August 31

Revenue

$ 3,540.00

U

Expenses:

Packing supplies

$     170.00

U

Oyster Bed Maintenance

$     140.00

F

Wages and Salaries

$     410.00

U

Shipping

$     270.00

F

Utilities

$     190.00

F

Other

$     620.00

U

Total Expenses

$     600.00

U

Net Operating Income

$ 4,140.00

U

(A) Revenue variance

$ 3,540.00

Unfavorable

(B) Spending Variance

$     600.00*

Unfavorable

(A+B) Net Income variance

$ 4,140.00

Unfavorable

*Spending variance is the total of all expenses variance. Add all Unfavorable variance and deduct all favorable expense variance to get total expenditure variance of $600.

Quilcene Oysteria

Revenues and Spending Variance

For the Month ended August 31

Revenue

$ 3,540.00

U

Expenses:

Packing supplies

$     170.00

U

Oyster Bed Maintenance

$     140.00

F

Wages and Salaries

$     410.00

U

Shipping

$     270.00

F

Utilities

$     190.00

F

Other

$     620.00

U

Total Expenses

$     600.00

U

Net Operating Income

$ 4,140.00

U