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 Month Ended August 31 Actual pounds (9) 8,000 Revenue (54.209) Expenses: Packing supplies ($0.409) Oyster bed maintenance ($3.100) Wages and salaries ($2,600 + $0.259) Shipping ($0.659) Utilities ($1,280) Other ($500 + $0.019) Total expense Net operating income $ 33,600 3,200 3,100 4,600 5,200 1,280 580 17.980 $ 15,640 The actual results for August appear below: Quiloene Oysteria Income Statement For the Month Ended August 31 Actual pounds 8,000 $ 27,400 Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income 3,370 2080 5,010 4.020 1,090 1,200 18,560 8.840 S 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.) Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income

Answer 1

Answer Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Revenue $6,200 U Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income $170 u $140 F $410 U $270 F $190 F $620 U $600 U $6,800 U

Explanations Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Actual Flexible Revenue and Results Budget Spending Variances Pounds 8,000 8,000 Revenue ($4.209) $27,400 $33,600 $6,200 u Expenses: Packing supplies ($0.40q) $3,370 $3,200 $170 0 Oyster bed maintenance ($3,100) $2,960 $3,100 $140F Wages and salaries ($2,600 + $0.259) $4,600 $410 0 Shipping ($0.659) $4,930 $5,200 $270 F Utilities ($1,280) $1,090 $1,280 $190 F Other ($500 + $0.019) $1,200 $580 $620 U Total Expense $18,560 $17,960 $600 u Net operating income $8,840 $15,640 $6,800 U $5,010

Answer $4,400 F Flight Café Activity Variances For the Month Ended July 31 Revenue Expenses: Raw materials Wages and salaries Utilities Facility Rent Insurance Miscellaneous Total expense Net operating income $1,900 U $200 U $50 U $0 None $0 None $100 U $2,250 U $2,150 F

Activity Variances $4,400 F Explanations Flight Café Activity Variances For the Month Ended July 31 Flexible Planning Budget Budget Meals 29,000 28,000 Revenue ($4.409) $127,600 $123,200 Expenses: Raw materials ($1.909) $55,100 $53,200 Wages and salaries ($6,000 + $0.209) $11,800 $11,600 Utilities ($1,900 + $0.05) $3,350 $3,300 Facility Rent ($3,500) $3,500 $3,500 Insurance ($2,000) $2,000 $2,000 Miscellaneous ($800 + $0.109) $3,700 Total Expense $79,450 $77,200 Net operating income $48,150 $46,000 $1,900 U $200 U $50 U $0 None $0 None $100 U $2,250U $2,150 F $3,600