Question

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7000 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) 7,000 $ 29,400 Revenue ($4.20q) Expenses Packing supplies ($0.35q) Oyster bed maintenance ($3,200) Wages and salaries ($2,300+ $0.35q) Shipping ($0.75q) Utilities (ş1,300) Other ($500 $0.01q) 2,450 3,200 4,750 5,250 1,300 570 17,520 $ 11,880 Total expensee Net operatinq income

The actual results for August appear below:

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. Input all amounts as positive values.

Answer 1

Solution

Quilcene Oysteria
Revenue and Spending Variance
for the month ended August 31
Revenues	$ 2,800.00	U
Expenses:
Packing supplies	$     170.00	U
Oyster bad maintenance	$     140.00	F
wages and salaries	$     410.00	U
Shipping	$     270.00	F
Utilities	$     190.00	F
Other	$     620.00	U
Total expenses	$     600.00	U
Net Operating Income	$ 3,400.00	U