Question

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,600 pounds of oysters in August. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 7,600 Actual pounds (g) Revenue (4.10q) Expenses: S 31,160 Packing supplies ($0.40g) Oyster bed maintenance ($3,000) Wages and salaries ($2,500 + $0.35g) Shipping ($0.60g) Utilities ($1,270) Other ($490 $0.01q) 3,040 3,000 5,160 4,560 1,270 566 17,596 13,564 Total expense Net operating income The actual results for August appear below:

Answer 1

Solution

Quilcene Oysteria
Revenues and Spending Variance
For the Month ended August 31
Revenue	$     3,760.00	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	$     4,360.00	U

Standard cost

Revenue	$ 31,160
Expenses:
Packing supplies	$ 3,040
Oyster Bed Maintenance	$ 3,000
Wages and Salaries	$ 5,160
Shipping	$ 4,560
Utilities	$ 1,270
Other	$ 566
Total Expenses	$ 17,596
Net Operating Income	$ 13,564