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

Question

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,000 pounds of oysters in August. The company’s flexible budget for August appears below:

The actual results for August appear below:

Required:

Calculate 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 Flexible Budget For the Month Ended August 31 Actual pounds (q) 7,000 Revenue ($4.25q) $ 29,750 Expenses: Packing supplies ($0.40q) 2,800 Oyster bed maintenance ($3,300) 3,300 Wages and salaries ($2,600 + $0.30q) 4,700 Shipping ($0.70q) 4,900 Utilities ($1,250) 1,250 Other ($430 + $0.01q) 500 Total expense 17,450 Net operating income $ 12,300 Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income

Explanation / Answer

Revenue 2450 U =29750-27300 Expenses: Packing supplies 170 U =2970-2800 Oyster bed maintenance 140 F =3300-3160 Wages and salaries 410 U =5110-4700 Shipping 270 F =4900-4630 Utilities 190 F =1250-1060 Other 620 U =1120-500 Total expense 600 U Net operating income 3050 U

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.