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

Question

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,400 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) Revenue ($4.10q) 7,400 $30,340 Expenses Packing supplies (50.30q) Oyster bed maintenance ($3,200) Wages and salaries ($2,400 $0.30q) Shipping (S0.65q) Utilities ($1,210) Other ($420 +S0.01q) 2,220 3,200 4,620 4,810 1,210 494 Total expense 16,554 Net operating income $13,786 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds Revenue 7,400 27,100 Expenses Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other 2,390 3,060 5,030 4,540 1,020 1,114 Total expense 17,154 Net operating income $9,946

Explanation / Answer

Actual Revenue and spending variances Flexible budget Revenue 27100 3240 U 30340 Expenses: Packing supplies 2390 170 U 2220 Oyster bed maintenance 3060 3200 Wages and salaries 5030 410 U 4620 Shipping 4540 270 F 4810 Utilities 1020 190 F 1210 Other 1114 620 U 494 Total expense 17154 600 U 16554 Net operating income 9946 3840 U 13786

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