Question

9-3

Exercise 9-3 Revenue and Spending Variances [LO9-3) Qulcene 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: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds () ඉසිපල ) Revenue ($4.209) Expenses: Packing supplies (Se.359) Oyster bed maintenance ($3,100) Wapes and salaries (12,500 se. Shipping ($e.689) Utilities ($1,290) Other (5470 .se.01) Total expense Net operating income $ 15,35e The actual results for August appear below. Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds $ 22,00 2,970 Revenue Expenses : Packing Supplies Oyster bed waintenance Wapes and salaries Shipping Uti Other Total expense Net operating Income 4,530 1.100 Required: Calculate the company's revenue and spending variances for August. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses Packing supplies Oyster bed maintenance Wages and salaries Shipping Other Total expense Net operating income

Answer 1

Revenue and spending variance

Revenue	6200 U
Expense
Packing supplies	170 U
Oyster bed maintenance	140 F
Wages and salaries	410 U
Shipping	270 F
Utilities	190 F
Other	620 U
Total expense	600 U
Net operating income	6800 U