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 (q) 7,100 Revenue (4.20q) $ 29,820 Expenses: 2,130 3,100 6,050 4,615 Packing supplies ($0.30q) Oyster bed maintenance ($3,100) Wages and salaries ($2,500 $0.50q) Shipping ($0.65g) Utilities ($1,250) 1,250 Other ($460 + $0.01q Total expense 531 17,676 $ 12,144 Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,100 $ 27,000 Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping 2,300 2,960 6,460 4,345 1,060 1,151 18,276 Utilities Other Total expense $8,724 Net operating income

Answer 1

Answer

--Revenue & Spending Variance = Difference between Flexible Budget and Actual results.

	Revenue & Spending Variance
Revenues	$         2,820.00	U
Expenses:
Packing supplies	$             170.00	U
Oyster bed maintenance	$             140.00	F
Wages & Salaries	$             410.00	U
Shipping	$             270.00	F
Utilities	$             190.00	F
Other	$             620.00	U
Total Expenses	$             600.00	U
Net Operating Income	$         3,420.00	U