Question

EXERCISE 92 Prepare a Report Showing Revenue and Spending Variances L09 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: Quicene Oysteria Flexible Budget For the Month Ended August 31 8,000 $32,000 Actual pounds (9) .......... Revenue ($4.000)........ Expenses Packing supplies (50.500) Oyster bed maintenance ($3.200)...... Wages and salaries ($2,900 + $0.30). Shipping ($0.809) ...... Utilities ($830) Other ($450 + $0.05). Total expense.. Net operating income 4,000 3,200 5,300 6,400 830 850 20,580 $11,420 ne actual results Auge appear how Quilicene Oysteria Income Statement For the Month Ended August 31 Reverse Waces and wants Fatal expense operate incones Required: Calculate the company's en and spending vananes to Augustine Refer Exhibur

Answer 1

Quilcena Oysteria Revenue & Spending Actual Results Variances 8000 $ 35,200 $ 3,200 Flexible Budget 8000 32,000 F $ $ $ U F Actual pounds Revenue Expenses Packing supplies Oyster Bed Maintainance Wages & Salaries Shipping Utilities Other Total Expenses Net operating Income $ 4,200 $ 3,100 $ 5,640 $ 6,950 $ 810 $ 980 $ 21,680 $ 13,520 | $ $ $ 200 | 100 340 550 20 130 1,100 2,100 | 4,000 3,200 5.300 6,400 830 $ $ $ $ $ $ $ $ U F U U F 850 $ $ 20,580 11,420 Revenue & Spending Variance = Actual Results - Flexible Budget Revenue variance is Favorable when actual revenue is more than flexible revenue and Expenses Variance are favorable when actual expense is less than budgeted expenses. Revenue variance is Unfavorable when actual revenue is less than Budgeted revenue and Expenses Variance are Unfavorable when actual expense is more than budgeted expenses.