in the Pacific Northwest. The company harvested and sold 7,300 pounds of oysters

Question

in the Pacific Northwest. The company harvested and sold 7,300 pounds of oysters in Quilcene Oysteria farms and sells oysters August. The company's lexible budget for August appears below Quilcene Oysteria Flexible Budget For the Month Ended Auguat 31 7,300 $29,930 2, 555 Oyater bed maintenance (3,100) 3,100 Actual pounds (g) Revenue (4.10g) Expensea: Packing aupplies (0.35 Kages and aalaries (2,600 $0.50g) Shipping (s0.60q) Ueilitiea ($1,290) other (460+0.01g) 4,380 1,290 533 Total expense Net operating income $11,822 The actual results for August appear below Quilcene Oysteria Income Statement For the Month Ended Auguat 31 7,300 Actual pounds $27, 000 Revenue Expenses: 2,725 Packing aupplies Oyater bed maintenance Wages and salaries Shipping utilities Other 2,960 6, 660 4, 110 1,100 1,153 Total expense Net operating income ,292- Required: Calculate the company's revenue and spending variances for August. (Indicate the offect of each variance by selecting "F" for favorable,-U. for unfavorable, and "None-for no effect (Le-zero variance). Input all omount s I-) Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Expenses Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income

Explanation / Answer

Calculate revenue and spending variance :

Flexible budget Actual result Revenue and spending variance Revenue 29930 27000 2930 U Expenses : Packing supplies 2555 2725 170 U Oyster bed maintenance 3100 2960 140 F Wages and salaries 6250 6660 410 U Shipping 4380 4110 270 F Utilities 1290 1100 190 F Other 533 1153 620 U Total expense 18108 18708 600 U Net operating income 11822 8292 3530 U

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