Question

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7.900 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 (a) 7,900 Revenue ($4.059) * $ 31,995 Expenses: Packing supplies ($0.359) 2,765 Oyster bed maintenance ($3,000) 3,000 Wages and salaries ($2,300 + $0.509) 6,250 Shipping ($0.709) 5,530 Utilities ($1,220) 1,220 Other ($470 + $0.019) 549 Total expense 19,314 Net operating income $ 12,681 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,900 Revenue $ 27,000 Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other 2,935 2,860 6,660 5,260 1,030 1,169 Total expense 19,914 Net operating income $ 7,086

Answer 1

u Anilcene oystenia Revenue and spending variances for the month Ended August 31 Revenue $4,995 cesse Expenses? Packing supplies $ 170 Oyster Bed Maintenance & 140 wages and salaries. $ 410 Shipping $270 utilities $190 Other $620 Total expense $ 600 Net operating Income $ 5,595 се съъсъс

Actual T flexible Revenir Calculation: Cuilcone Oysteria - Revenue and spending variances G for the month Ended August 31 and spending Results Budget variances Pounds (9) 7,900 7,900 Revenue ($4.059) $27,000 $31,995 $(4,995) U Less: Expenses: Packing supplies ($ 0.359) $2,935 & 2,765 $170 u Oyster bed maintenance($3,000) $2,860 $3,000 $(140) f wages and salaries ($2,300 + $0.509) & 6,660 & 6,250 $410 u Shipping (80.7099 $5,260 $5,530 $(270) f utilities ($1,220) $ 1,030 $ 1,220 $(190) f Other ($470 + $0.019) $1,169 & 549 $620 u - Total expense $19,914 $19,314 $600 u Net operating income 1$ 7,086 $ 12,681 $15,595 ul. flexible Budget & q = 7,900 Revenue = $4.05q = $4.05X 7,900 = $31,995 Packing supplies = $0.359 = $0.35 x 7,900 = $2755 oyster Bed maintenance = $3,000 wages and salaries = $2,300 + $0.50g = $2,300 + $0.50 X 7,900 = $2,300 + $3,950 = $6,250

Shipping = $0.70 q. - $0.70 x 7,900 = $5,530 Utilities – $1,220 Other - $ 470 + $0.019 - $ 470 + $0.01 x 7,900 - $ 470 + $79 - $549 Revenue and spending variances a Actual Results - Flexible Budget $27,000 - $31,995 - $(4,995) Revenue & Packing Supplies = $2,935 - $2,765 - $170