Olympia Bivalve farms and sells oysters in the Pacific Northwest. The company ha

Question

Olympia Bivalve farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,800 pounds of oysters in July. The company’s flexible budget for July appears below:

Prepare a report showing the company’s 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).

Olympia Bivalve farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,800 pounds of oysters in July. The company’s flexible budget for July appears below:

Explanation / Answer

Revenue amount is Favourable when Actual results exceed flexible budget

Expenses is Favourable when Actual results decreased than the flexible budget

Olympia Bivalve Revenue and Spending Variances For the Month Ended July 31 Flexible Budget Actual Results Revenue
and
Spending
Variances   Revenue $33,150 $27,200 $5,950   U   Expenses:       Packing supplies $2,730 $2,900 $170   U       Oyster bed maintenance $3,300 $3,160 $140   F       Wages and salaries $4,740 $5,150 $410   U       Shipping $4,290 $4,020 $270   F       Utilities $1,250 $1,060 $190   F       Other $578 $1,198 $620   U   Total expense $16,888 $17,488 $600   U   Net operating income $16,262 $9,712 $6,550   U

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