Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company
ID: 2561221 • Letter: Q
Question
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,100 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) 7,100 $ 29,465 Revenue ($4.15q) Expenses: Packing supplies ($0.35q) Oyster bed maintenance ($3,500) 2,485 3,500 5,195 5,325 1,300 501 18,306 $ 11,159 Wages and salaries ($2,000$0.45q) Shipping ($0.75q) Utilities ($1,300) Other ($430$0.01q) Total expense Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,100 $ 27,300 2,655 Revenue Expenses: Packing supplies Oyster bed maintenance 3,360Explanation / Answer
Quilcene Oyster Farms:
Particulars
Amounts in $
Budget
Actual
Variance in $
Variance
Reason for U or A
Revenue
29,465.00
27,300.00
2,165.00
U
Since the company earned lesser revenue when compared with budgeted amount
Less: expenses:
Packing supplies
2,485.00
2,655.00
-170.00
U
Since the company has spent more than budgeted
Oyster bed maintenance
3,500.00
3,360.00
140.00
F
Since the company has spent less than budgeted
Wages and salaries
5,195.00
5,605.00
-410.00
U
Since the company has spent more than budgeted
Shipping
5,325.00
5,055.00
270.00
F
Since the company has spent less than budgeted
Utilities
1,300.00
1,110.00
190.00
F
Since the company has spent less than budgeted
Other
501.00
1,121.00
-620.00
U
Since the company has spent more than budgeted
Total expenses
18,306.00
18,906.00
Net operating income
11,159.00
8,394.00
Particulars
Amounts in $
Budget
Actual
Variance in $
Variance
Reason for U or A
Revenue
29,465.00
27,300.00
2,165.00
U
Since the company earned lesser revenue when compared with budgeted amount
Less: expenses:
Packing supplies
2,485.00
2,655.00
-170.00
U
Since the company has spent more than budgeted
Oyster bed maintenance
3,500.00
3,360.00
140.00
F
Since the company has spent less than budgeted
Wages and salaries
5,195.00
5,605.00
-410.00
U
Since the company has spent more than budgeted
Shipping
5,325.00
5,055.00
270.00
F
Since the company has spent less than budgeted
Utilities
1,300.00
1,110.00
190.00
F
Since the company has spent less than budgeted
Other
501.00
1,121.00
-620.00
U
Since the company has spent more than budgeted
Total expenses
18,306.00
18,906.00
Net operating income
11,159.00
8,394.00
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