Question

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,100 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 ($4.109) Expenses : Packing supplies ($0.409) Oyster bed maintenance ($3,300) Wages and salaries ($2,200 + $0.459) Shipping ($0.659) Utilities ($1,220) Other ($490 + $0.019) Total expense Net operating income 2,840 3.300 5,395 4,615 1.220 561 17,931 $ 11,179 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,100 $ 26,900 Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income 3,010 3,160 5,805 4,345 1.030 18.531 $ 8,369

Answer 1

Quilcene Oysteria
Revenue and spending variances
For the month ended August 31
Particulars		Calculation		Variance
Revenue		Budgeted revenue - Actual Revenue	= 29110-26900	2210	U
Expenses:		Budgeted expense - Actual expense
	Packing machine		=2840-3010	170	U
	Oyster bed maintenance		=3300-3160	140	F
	Wages and salaries		=5395-5805	410	U
	Shipping		=4615-4345	270	F
	Utilities		=1220-1030	190	F
	Other		=561-1181	620	U
Total expense			=17931-18531	600	U
Net Operating income		Budgeted income - Actual income	=11179-8369	2810	U