Question

For the Month Ended August 31 Actual pounds (q) 7,300 Revenue ($4.15q) $30,295 Expenses: Packing supplies (se.40q) Oyster bed maintenance ($3,200) Wages and salaries ($2,18ese.25q) Shipping ($e.60q) Utilities ($1,300) other ($460 se.01q) 2,928 3, 2eе 3,925 4, 380 1, 3ee 533 Total expense 16,258 $14,037 Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,30e 27,300 Revenue Expenses: Packing supplies Oyster bed maintenance 3,09e 3,06e 4,335 4,110 Wages and salaries Shipping Utilities 1,11e 1,153 Other Total expense 16,858 $ 10,442 Net operating income Required: Calculate the company's revenue and spending varlances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). 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

Ans.	QUILCENE OYSTERIA
	Revenue & Spending Variances
	For the Month Ended August 31
		Actual results	Revenue and Spending Variance		Flexible Budget
	Pounds	7300			7300
	Revenue	$27,300	$2,995	U	$30,295
	Less: Expenses:
	Packing supplies	$3,090	$170	U	$2,920
	Oyster bed maintenance	$3,060	$140	F	$3,200
	Wages and salaries	$4,335	$410	U	$3,925
	Shipping	$4,110	$270	F	$4,380
	Utilities	$1,110	$190	F	$1,300
	Other	$1,153	$620	U	$533
	Total expenses	$16,858	$600	U	$16,258
	Net Operating Income	$10,442	$3,595	U	$14,037
	Revenue & Spending variance   =   Actual results - Flexible budget
	*Flexible budget is prepared on the basis of actual units.
	*Fixed expenses remain same as planning budget.
	*Increase in revenue or net operating income and decrease in expenses from flexible budget to actual results =   Favorable.
	*Decrease in revenue or net operating income and increase in expenses from flexible budget to actual results =   Unfavorable.