Question

Qullcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,700 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 (q) und (g) 7.700 50 $ 31,185 Revenue ($4.05) Expenses: Packing supplies ($0.359) Oyster bed maintenance ($3,100) Hages and salaries ($2,200 + $0.25) Shipping ($0.60g) Utilities ($1,220) Other ($500 + $0.019) Total expense Net operating income 2,695 3,100 4, 125 4,620 1, 220 577 16,337 $ 14,848 The actual results for August appear below. Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,700 $ 26,900 Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income 2,865 2,960 4,535 4, 350 1,030 1,197 16,937 9,963 $

Answer 1

Compute the company's revenue and spending variances for August. Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 $4,285 U Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping 170 U 140 F 410 U 270 F Utilities 190 F 620 U Other Total expense 600 U $4,885 U Net operating income

Explanation: Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Flexible Revenue and Actual Results Spending Variances Budget Pounds (q) 7,700 7,700 Revenue ($4.05q) Expenses: Packing supplies ($0.35q) Oyster bed maintenance ($3,100) Wages and salaries ($2,200+ $0.25q) Shipping ($0.60q) Utilities ($1,220) Other ($500 $0.01q) Total expense $4,285 U $26,900 $31,185 2,865 2,960 4,535 4,350 1,030 1,197 16,937 $9,963 2,695 3,100 4,125 4,620 1,220 170 U 140 F 410 U 270 F 190 F 620 U 577 16,337 $14,848 600 U $4,885 U Net operating income