Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company
ID: 2556376 • Letter: Q
Question
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,900 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) 7,900 Revenue ($4.25q) $ 33,575 Expenses: Packing supplies ($0.35q) 2,765 Oyster bed maintenance ($3,400) 3,400 Wages and salaries ($2,300 + $0.45q) 5,855 Shipping ($0.60q) 4,740 Utilities ($1,240) 1,240 Other ($470 + $0.01q) 549 Total expense 18,549 Net operating income $ 15,026Explanation / Answer
Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Actual Flexible budget Revenue and Spending Variances Revenue 27100 33575 6475 U Expenses Packing supplies 2935 2765 170 U Oyster bed maintenance 3260 3400 140 F Weges and salaries 6265 5855 410 U shipping 4470 4740 270 F utilities 1050 1240 190 F Other 1169 549 620 U Total expenses 19149 18549 600 U Net operating income 7951 15026 7075 U
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