Question

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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 Actual pounds (9) 7,600 $ 31,160 Revenue ($4.10g) Expenses: Packing supplies ($0.359) Oyster bed maintenance ($3,000) Wages and salaries ($2,000 + $0.309) Shipping ($0.709) Utilities ($1,270) Other ($ 490 + $0.019) Total expense Net operating income 2,660 3,000 4,280 5,320 1,270 566 17,096 $ 14,064 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,600 $ 26,500 Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income 2,830 2,860 4,690 5,050 1,080 1,186 17,696 8,804 $

Answer 1

Quilcene Oysteria Revenue and Spending Variances For the month ended August 31 Flexible Actual Revenue and budget result Spending Variances Actual pounds 7,600 7,600 Revenue $ 31,160 $ 26,500 $ 4,660 U Expenses Packing supplies $ 2,660 $ 2,830 $ 170 U Oyster bed maintenance $ 3,000 $ 2,860 $ 140 F wages and salaries $ 4,280 $ 4,690 $ 410 U Shipping $ 5,320 $ 5,050 $ 270F Utilities $ 1,270 $ 1,080 $ 190 F Other $ 566 $ 1,186 $ 620 U Total expense $ 17,096 $ 17,696 $ 600 U Net Operating income $ 14,064 $ 8,804 5,260 U