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Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company

ID: 2572362 • 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 Revenue ($4.15q) $ 31,540 Expenses: Packing supplies ($0.30q) 2,280 Oyster bed maintenance ($3,300) 3,300 Wages and salaries ($2,400 + $0.40q) 5,440 Shipping ($0.60q) 4,560 Utilities ($1,300) 1,300 Other ($440 + $0.01q) 516 Total expense 17,396 Net operating income $ 14,144 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,600 Revenue $ 26,600 Expenses: Packing supplies 2,450 Oyster bed maintenance 3,160 Wages and salaries 5,850 Shipping 4,290 Utilities 1,110 Other 1,136 Total expense 17,996 Net operating income $ 8,604 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 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 (g) 7,600 $31,540 Revenue ($4.15q) Expenses: Packing supplies ($0.30g) Oyster bed maintenance ($3,300) Wages and salaries ($2,400 $0.40g) Shipping (0.60g) Utilities ($1,300) Other $440 $0.01q) 2,280 3,300 5,440 4,560 1,300 516 17,396 $14,14.4 Total expense Net operating income

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Actual   Flexible Budget Variance F or U Actual pounds               7,600.00               7,600.00                            -   Revenue             26,600.00             31,540.00             (4,940.00) U Expenses: Packing supplies               2,450.00               2,280.00                   170.00 U Oyster Bed maintenance               3,160.00               3,300.00                 (140.00) F Wages and salaries               5,850.00               5,440.00                   410.00 U Shipping               4,290.00               4,560.00                 (270.00) F Utilities               1,110.00               1,300.00                 (190.00) F Other               1,136.00                   516.00                   620.00 U Total Expenses             17,996.00             17,396.00                   600.00 U Net operating income               8,604.00             14,144.00             (5,540.00) U