Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company
ID: 2525910 • Letter: Q
Question
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,600 pounds of oysters in August. The company's flexible budget for August appears below Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (q) 7,600 $ 31,160 Revenue ($4.10q) Expenses: Packing supplies ($0.35q) Oyster bed maintenance ($3,600) Wages and salaries ($2,200 $0.45q) Shipping ($0.65q) Utilities ($1,240) Other ($420 $0.01q) 2,660 3,600 5,620 4,940 1,240 496 18,556 $12,604 Total expense Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,600 Revenue $ 27,100 Expense:s Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other 2,830 3,460 6,030 4,670 1,050 1,116 19,156 $ 7,944 Total expense Net operating income 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.)Explanation / Answer
Quilcene Oysteria
Revenue and Spending Variances
For the Month Ended August 31
Actual results
Flexible budget
Revenue and Spending variances
Pounds
7600
7600
Revenue ($4.10 q )
27100
31160
4060U
Expenses:
Packing supplies ($0.35 q )
2830
2660
170U
Oyster bed maintenance ($3600)
3460
3600
140F
Wages and salaries ($2200 + $0.45q)
6030
5620
410U
Shipping ($0.65 q )
4670
4940
270F
Utilities ($1240)
1050
1240
190F
Other ($420 + $0.01q)
1116
496
620U
Total expense
19156
18556
600U
Net operating income
7944
12604
4660U
Actual results
Flexible budget
Revenue and Spending variances
Pounds
7600
7600
Revenue ($4.10 q )
27100
31160
4060U
Expenses:
Packing supplies ($0.35 q )
2830
2660
170U
Oyster bed maintenance ($3600)
3460
3600
140F
Wages and salaries ($2200 + $0.45q)
6030
5620
410U
Shipping ($0.65 q )
4670
4940
270F
Utilities ($1240)
1050
1240
190F
Other ($420 + $0.01q)
1116
496
620U
Total expense
19156
18556
600U
Net operating income
7944
12604
4660U
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