Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,400 pounds of oysters inAugust. The company's flexible budget for August appears below:Quilcene OysteriaFlexible BudgetFor the Month Ended August 31Actual pounds (9)Revenue ($4.259)Expenses:Packing supplies ($0.409)Oyster bed maintenance ($3,500)Wages and salaries ($2,500 + $0.459)Shipping ($0.559)Utilities ($1,260)Other ($480 + $0.019)Total expenseNet operating incomeThe actual results for August were as follows:Quilcene OysteriaIncome StatementFor the Month Ended August 317,400$ 31,4502,9603,5005,8304,0701,26055418,174$ 13,276Actual poundsRevenueExpenses:Packing suppliesOyster bed maintenanceWages and salariesShippingUtilitiesOtherTotal expenseNet operating incomeRequired:7,400$ 27,0003,1303,3606,2403,8001,0701,17418,774$ 8,226Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)Quilcene OysteriaRevenue and Spending VariancesFor the Month Ended August 31RevenueExpenses:Packing suppliesOyster bed maintenanceWages and salariesShippingUtilitiesOtherTotal expenseNet operating income

REVENUE & SPENDING VARIANCE The difference between budgeted result and actual result can be…

Answered: Quilcene Oysteria farms and sells…

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,400 pounds of oysters in August. The company's flexible budget for August appears below:

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 9E: Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost...

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Question

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,400 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 (9)
Revenue ($4.259)
Expenses:
Packing supplies ($0.409)
Oyster bed maintenance ($3,500)
Wages and salaries ($2,500 + $0.459)
Shipping ($0.559)
Utilities ($1,260)
Other ($480 + $0.019)
Total expense
Net operating income
The actual results for August were as follows:
Quilcene Oysteria
Income Statement
For the Month Ended August 31
7,400
$ 31,450
2,960
3,500
5,830
4,070
1,260
554
18,174
$ 13,276
Actual pounds
Revenue
Expenses:
Packing supplies
Oyster bed maintenance
Wages and salaries
Shipping
Utilities
Other
Total expense
Net operating income
Required:
7,400
$ 27,000
3,130
3,360
6,240
3,800
1,070
1,174
18,774
$ 8,226
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 (i.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
Utilities
Other
Total expense
Net operating income

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