Question

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,100 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) 7,100 $ 29,465 Revenue ($4.159) Expenses: Packing supplies ($0.259) Oyster bed maintenance ($3,200) Wages and salaries ($2,100 + $0.459) Shipping ($0.759) Utilities ($1,210) Other ($400 + $0.019) Total expense Net operating income 1,775 3,200 5,295 5,325 1,210 471 17,276 $ 12, 189 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,100 $ 27,300 Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income 1,945 3,060 5,705 5,055 1,020 1,091 17,876 $ 9,424

Answer 1

Revenue Spending Variance
			Actual	Revenue and Spending variance	Flexible
Actual Pounds		7100				7100
Revenue			27300	2,165	U		29,465
Expense:
Packing supplies		1945	170	U		1775
Oyster and maintenance	3060	140	F		3200
Wages and salaries		5705	410	U		5295
Shipping			5055	270	F		5325
Utilities			1020	190	F		1210
Other			1091	620	U		471
Total expense		17876	600	U		17276
Net Operating income	9424	2765	U		12189