Question

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,000 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 (q) 7,000 Revenue ($4.20q) $29,400 Expenses: Packing supplies ($0.25g) Oyster bed maintenance ($3,100) Wages and salaries ($2,000 + $0.40g) Shipping ($0.70q) Utilities ($1,300) Other $450 1,750 3,100 4,800 4,900 1,300 520 16,370 $0.01q) Total expense $13,030 Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,000 $ 27,200 Revenue Expenses Packing supplies Oyster bed maintenance Wages and salaries Shipping 1,920 2,960 5,210 4,630 1,110 1,140 Utilities Other Total expense 16,970 $10,230 Net operating income

Answer 1

Solution

Quilcene Oysteria
Revenues and Spending Variance
For the Month ended August 31
Revenue	$ 2,200.00	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	$ 2,800.00	U