Question

Exercise 9-3 Revenue and Spending Variances (LO9-3) 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 $ 34,000 Revenue ($4.259) Expenses Packing supplies (50.359) Oyster bed maintenance (83,100) Wages and salaries ($2,500 + $0.35) Shipping ($0.600) Utilities ($1,250) Other ($430 + $0.019) Total expense 2.800 3,100 5,300 4.800 1,250 510 17,760 $ 16,240 Net operating income The actual results for August appear below:
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Answer 1

Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 $ 7,500 U Revenue Expenses: Packing Supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total Expense Net Operating Income Working Notes: Revenue $34,000-$26.500 $7,500 Packing Supplies = $2,970-$2,800 = $170 Oyster bed maintenance $3,100 - S2,960 $140 S 170 U 140 F S 410 U $ 270 F 190 F 620 U S 600 U S 8,100 U $ $ Wages and salaries = $5,710-$5,300 = $410 Shipping = $4,800-$4,530 $270 Utilities S1,250-$1,060 $190 Other $1130-S510 = $620 Total Expenses $18,360-$17,760 = S600 Net Operating Income $16,240-S8,140 $8,100