Question

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,800 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) 7,800 $ 33,150 Revenue ($4.259) Expenses: Packing supplies ($0.359) Oyster bed maintenance ($3,400) Wages and salaries ($2,300 + $0.459) Shipping ($0.759) Utilities ($1,290) Other ($420 + $0.019) Total expense 2,730 3,400 5,810 5,850 1,290 498 19,578 $ 13,572 Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,800 $ 27,200 Revenue Expenses : Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income 2,900 3,260 6,220 5,580 1,100 1,118 20,178 7,022 $

Answer 1

	Actual results	Flexible budget	Revenue and spending variances
Revenue	27200	33150	5950	U
Expenses:
Packing supplies	2900	2730	170	U
Oyster bed maintenance	3260	3400	140	F
Wages and salaries	6220	5810	410	U
Shipping	5580	5850	270	F
Utilities	1100	1290	190	F
Other	1118	498	620	U
Total expense	20178	19578	600	U
Net Operating income	7022	13572	6550	U