Question

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,200...

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,200 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) 7,200
Revenue ($4.15q) $ 29,880
Expenses:
Packing supplies ($0.35q) 2,520
Oyster bed maintenance ($3,400) 3,400
Wages and salaries ($2,400 + $0.45q) 5,640
Shipping ($0.55q) 3,960
Utilities ($1,250) 1,250
Other ($500 + $0.01q) 572
Total expense 17,342
Net operating income $ 12,538

The actual results for August appear below:

Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds 7,200
Revenue $ 26,600
Expenses:
Packing supplies 2,690
Oyster bed maintenance 3,260
Wages and salaries 6,050
Shipping 3,690
Utilities 1,060
Other 1,192
Total expense 17,942
Net operating income $ 8,658

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.)

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Solution:

Quilcene Oysteria
Revenue and spending Variances
For the month ended August 31
Particulars Actual results Flexible Budget Revenue and spending variances
Actual Pounds 7200 7200
Revenue $26,600.00 $29,880.00 $3,280.00 U
Expenses:
Packing Supplies $2,690.00 $2,520.00 $170.00 U
Oyster bed maintenance $3,260.00 $3,400.00 $140.00 F
Wages and Salaries $6,050.00 $5,640.00 $410.00 U
Shipping $3,690.00 $3,960.00 $270.00 F
Utilities $1,060.00 $1,250.00 $190.00 F
Other $1,192.00 $572.00 $620.00 U
Total Expenses $17,942.00 $17,342.00 $600.00 U
Net Operating Income $8,658.00 $12,538.00 $3,880.00 U
Add a comment
Know the answer?
Add Answer to:
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,200...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,200...

    Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,200 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) 7,200 Revenue ($4.25q) $ 30,600 Expenses: Packing supplies ($0.35q) 2,520 Oyster bed maintenance ($3,400) 3,400 Wages and salaries ($2,200 + $0.30q) 4,360 Shipping ($0.75q) 5,400 Utilities ($1,220) 1,220 Other ($480 + $0.01q) 552 Total expense 17,452 Net operating...

  • Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,200...

    Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,200 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) 7,200 Revenue ($4.10q) $ 29,520 Expenses: Packing supplies ($0.30q) 2,160 Oyster bed maintenance ($3,000) 3,000 Wages and salaries ($2,300 + $0.30q) 4,460 Shipping ($0.80q) 5,760 Utilities ($1,240) 1,240 Other ($460 + $0.01q) 532 Total expense 17,152 Net operating...

  • Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,500...

    Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,500 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) 7,500 Revenue ($4.15q) $ 31,125 Expenses: Packing supplies ($0.35q) 2,625 Oyster bed maintenance ($3,300) 3,300 Wages and salaries ($2,500 + $0.30q) 4,750 Shipping ($0.65q) 4,875 Utilities ($1,280) 1,280 Other ($400 + $0.01q) 475 Total expense 17,305 Net operating...

  • Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,400...

    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) 7,400 Revenue ($4.15q) $ 30,710 Expenses: Packing supplies ($0.30q) 2,220 Oyster bed maintenance ($3,100) 3,100 Wages and salaries ($2,200 + $0.45q) 5,530 Shipping ($0.70q) 5,180 Utilities ($1,240) 1,240 Other ($410 + $0.01q) 484 Total expense 17,754 Net operating...

  • Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,200...

    Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,200 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 (9) 7,200 $ 30,240 Revenue ($4.209) Expenses: Packing supplies ($0.30q) Oyster bed maintenance ($3,600) Wages and salaries ($2,200 + $0.259) Shipping ($0.659) Utilities ($1,200) Other ($430 + $0.019) Total expense 2,160 3,600 4,000 4,680 1,200 502 16,142 $ 14,098...

  • Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,600...

    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 ($4.10q) $ 31,160   Expenses:       Packing supplies ($0.25q) 1,900       Oyster bed maintenance ($3,200) 3,200       Wages and salaries ($2,400 + $0.45q) 5,820       Shipping ($0.70q) 5,320       Utilities ($1,260) 1,260       Other ($450 + $0.01q) 526   Total expense 18,026   Net...

  • Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,700...

    Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,700 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) 7,700 Revenue ($4.10q) $ 31,570 Expenses: Packing supplies ($0.25q) 1,925 Oyster bed maintenance ($3,300) 3,300 Wages and salaries ($2,200 + $0.35q) 4,895 Shipping ($0.75q) 5,775 Utilities ($1,260) 1,260 Other ($470 + $0.01q) 547 Total expense 17,702 Net operating...

  • Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,600...

    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 ($0.25q) 1,900 Oyster bed maintenance ($3,100) 3,100 Wages and salaries ($2,100 + $0.50q) 5,900 Shipping ($0.75q) 5,700 Utilities ($1,290) 1,290 Other ($420 + $0.01q) 496 Total expense 18,386 Net operating...

  • Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,600...

    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 $ 31,160 Revenue ($4.10q) Expenses: Packing supplies ($0.35q) Oyster bed maintenance ($3,600) Wages and salaries ($2,200 $0.45q) Shipping ($0.65q) Utilities ($1,240) Other ($420 $0.01q) 2,660 3,600 5,620 4,940 1,240 496 18,556 $12,604 Total expense Net operating income...

  • Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,300...

    Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,300 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) 7,300 Revenue ($4.20q) $ 30,660 Expenses: Packing supplies ($0.30q) 2,190 Oyster bed maintenance ($3,000) 3,000 Wages and salaries ($2,100 + $0.35q) 4,655 Shipping ($0.65q) 4,745 Utilities ($1,260) 1,260 Other ($450 + $0.01q) 523 Total expense 16,373 Net operating...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT