Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company
ID: 2517235 • Letter: Q
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 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 ($4.10q) $ 28,700 Expenses: Packing supplies ($0.35q) 2,450 Oyster bed maintenance ($3,400) 3,400 Wages and salaries ($2,600 + $0.35q) 5,050 Shipping ($0.65q) 4,550 Utilities ($1,260) 1,260 Other ($430 + $0.01q) 500 Total expense 17,210 Net operating income $ 11,490Explanation / Answer
Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Revenue 1400 U Expenses: Packing supplies 170 U Oyster bed maintenance 140 F Wages and salaries 410 U Shipping 270 F Utilities 190 F Other 620 U Total expense 600 U Net operating income 2000 U
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