Question

Exercise 9-3 Prepare a Report Showing Revenue and Spending Variances [LO9-3] 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: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (9) Revenue ($4.209) 7,900 $33,180 Expenses: Packing supplies ($0.409) Oyster bed maintenance ($3,600) Wages and salaries ($2,400 + $0.259) Shipping ($0.709) Utilities ($1,300) Other ($410 + $0.019) 3,160 3,600 4,375 5,530 1,300 489 Total expense 18,454 Net operating income $ 14,726

Answer 1

Quilence Oysteria
Revenue and Spending Variances
For the month ended August 31
	$
Revenue	6,080.00	U
Expenses:
Packing Supplies	170.00	F
Oyster bed maintenance	140.00	U
Wages and Salaries	410.00	F
Shipping	270.00	U
Utilities	190.00	U
Others	620.00	F
Total Expense	600.00	F
Net Operating Income	6,680.00	U
Explanations
Quilence Oysteria
Revenue and Spending Variances
For the month ended August 31
	Actual Results	Flexible Budgets	Revenue and
	($)	($)	Spending Variances
Pounds	7,900.00	7,900.00	-
Revenue	27,100.00	33,180.00	6,080.00	U
Expenses:
Packing Supplies	3,330.00	3,160.00	170.00	F
Oyster bed maintenance	3,460.00	3,600.00	140.00	U
Wages and Salaries	4,785.00	4,375.00	410.00	F
Shipping	5,260.00	5,530.00	270.00	U
Utilities	1,110.00	1,300.00	190.00	U
Others	1,109.00	489.00	620.00	F
Total Expense	19,054.00	18,454.00	600.00	F
Net Operating Income	8,046.00	14,726.00	6,680.00	U