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Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company

ID: 2493711 • Letter: Q

Question

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000 pounds of oysters in August. The company’s flexible budget for August appears below:

  

  

  

Compute the company’s revenue and spending variances for August. (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.)

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000 pounds of oysters in August. The company’s flexible budget for August appears below:

Explanation / Answer

The company’s revenue and spending variances for August

Particulars Budgeted Actual Variance   Revenue 32,000 35,200 3,200 (F) Expenses:- a)Packing supplies 4,000 4,200 200(U) b)Oyster bed maintenance 3,200 3,100 100(F) c)Wages and salaries 5,300 5,640 340(U) d)Shipping 6,400 6,950 550 (U) e)  Utilities 830 810 20(F) f)Other 850 980 130(U) Total Expense 20,580 21,680 1100 (U) Net Operating Income 11,420 13,520 2100(F)