Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company
ID: 2570447 • 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:
Compute 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.)
Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost drivers—the number of cruises and the number of passengers—that it uses in its budgeting and performance reports. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 81 passengers can be accommodated on the tour boat. Data concerning the company’s cost formulas appear below:
For example, vessel operating costs should be $6,600 per month plus $472.00 per cruise plus $3.10 per passenger. The company’s sales should average $32.00 per passenger. The company’s planning budget for July is based on 60 cruises and 3,200 passengers.
Complete the company’s planning budget for July.
Revenue:
Expenses:
Vessel operating costs:
Advertising:
Administrative costs:
Insurance:
Total expense:
Net operating income:
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:
Explanation / Answer
1) Company's revenue and spending variance :
Flexible budget actual results Revenue and spending variance Revenue 32390 27000 5390 U Expenses Packing supplies 2765 2935 170 U Oyster bed maintenance 3100 2960 140 F Wages and salaries 5755 6165 410 U Shipping 4740 4470 270 F Utilities 1260 1070 190 F other 549 1169 620 U TOtal expense 18169 18769 600 U Net operating income 14221 8231 5990 URelated Questions
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