Question

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,300 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) 7,300 Revenue ($4.209) 9.30,660 Expenses: Packing supplies ($0.40) Oyster bed maintenance ($3,300) Wages and salaries ($2,100 + $0.45) Shipping ($0.659) Utilities ($1,240) Other ($410 + $0.019) 2,920 3,300 5,385 4,745 1,240 483 18,073 Total expense Net operating income $ 12,587 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,300 Revenue $27,500 3,090 Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other 3,160 5,795 4,475 1,050 1,103 18,673 Total expense Net operating income $8,827

Answer 1

Correct Answer:

Quilcene Oysteria
Revenues and Spending Variance
For the Month ended August 31
Revenue	$ 3,160.00	U
Expenses:
Packing supplies	$     170.00	U
Oyster Bed Maintenance	$     140.00	F
Wages and Salaries	$     410.00	U
Shipping	$     270.00	F
Utilities	$     190.00	F
Other	$     620.00	U
Total Expenses	$     600.00	U
Net Operating Income	$ 3,760.00	U

(A) Revenue variance	$ 3,160.00	Unfavourable
(B) Spending Variance	$     600.00	Unfavourable
(A+B) Net Income variance	$ 3,760.00	Unfavourable

End of answer.

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