Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,300 pounds of oysters in August. The company's flexible budget for August appears below: Actual pounds (q) Revenue ($4.15q) Expenses: Packing supplies ($0.30q) Oyster bed maintenance ($3,500) Wages and salaries ($2,600 + $0.25q) Shipping ($0.75g) Utilities ($1,270) Other ($500+ $0.01q) Total expense Net operating income Actual pounds Revenue The actual results for August were as follows: Quilcene Oysteria Income Statement For the Month Ended August 31 Expenses: For the Month Ended August 31 Quilcene Oysteria Flexible Budget Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income 7,300 $ 30,295 Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 2,190 3,500 4,425 5,475 1,270 573 17,433 $ 12,862 Required: Calculate the company's revenue and spending variances for August. 7,300 $ 27,000 Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. 2,360 3,360 4,835 5,205 1,080 1, 193 18,033 $ 8,967
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,300 pounds of oysters in August. The company's flexible budget for August appears below: Actual pounds (q) Revenue ($4.15q) Expenses: Packing supplies ($0.30q) Oyster bed maintenance ($3,500) Wages and salaries ($2,600 + $0.25q) Shipping ($0.75g) Utilities ($1,270) Other ($500+ $0.01q) Total expense Net operating income Actual pounds Revenue The actual results for August were as follows: Quilcene Oysteria Income Statement For the Month Ended August 31 Expenses: For the Month Ended August 31 Quilcene Oysteria Flexible Budget Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income 7,300 $ 30,295 Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 2,190 3,500 4,425 5,475 1,270 573 17,433 $ 12,862 Required: Calculate the company's revenue and spending variances for August. 7,300 $ 27,000 Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. 2,360 3,360 4,835 5,205 1,080 1, 193 18,033 $ 8,967
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 4CMA: Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold...
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College