Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company
ID: 2580364 • Letter: Q
Question
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000 pounds of oysters in August. The company's flexible budget for August appears below:
Quilcene oysteria
Flexible Budget for the monthe ended August 31
Actual pounds(q) 8,000
Revenue ($4.00q) $32,000
Expenses:
Packing Supplies ($0.50q) 4,000
Oyster bed ma 3,200
Wages and salaries ($2,900 + $0.30q) 5,300
Shipping($0.80q) 6,400
Utilities($830) 830
Other ($450+$0.50q) 850
Total expenses 20,580
Net operting income $11,420
The actual results for August appear below:
Quilcene oysteria
Income statement for month ended August 31
Actual pounds 8,000
Revenue $35,200
Expenses:
Packing supplies 4,200
Oyster bed maintenance 3,100
Wages and salaries 5,640
Shipping 6,950
Utilities 810
Other 980
Total expenses 21,680
Net operating income $13,520
Required: Prepare a report showing the company's revenue and spending variances for August.
Explanation / Answer
Actual Revenue and spending variances Flexible budget Revenue 35200 3200 F 32000 Expenses: Packing Supplies 4200 200 U 4000 Oyster bed maintenance 3100 100 F 3200 Wages and salaries 5640 340 U 5300 Shipping 6950 550 U 6400 Utilities 810 20 F 830 Other 980 130 U 850 Total expenses 21680 1100 U 20580 Net operating income 13520 2100 F 11420
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.