Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,800 pounds of oysters in August. The company's flexible budget for August appears below: Actual pounds (q) Revenue ($4.15q) Expenses: Packing supplies ($0.35q) Oyster bed maintenance ($3,500) Wages and salaries ($2,500 + $0.40q) Shipping ($0.55g) Utilities ($1,270) Other ($450 + $0.019) Total expense Net operating income. Quilcene Oysteria Flexible Budget For the Month Ended August 31 The actual results for August were as follows: Actual pounds Revenue Expenses: Quilcene Oysteria Income Statement For the Month Ended August 31 Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income. Revenue Expenses: 7,800 $ 32,370 Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 2,730 3,500 Packing supplies Oyster bed maintenance 5,620 4,290 1,270 528 17,938 $ 14,432 7,800 $ 26,800 Required: Calculate the company's revenue and spending variances for August. 2,900 3,360 6,030 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. 4,020 1,080 1,148 18,538 $ 8,262
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,800 pounds of oysters in August. The company's flexible budget for August appears below: Actual pounds (q) Revenue ($4.15q) Expenses: Packing supplies ($0.35q) Oyster bed maintenance ($3,500) Wages and salaries ($2,500 + $0.40q) Shipping ($0.55g) Utilities ($1,270) Other ($450 + $0.019) Total expense Net operating income. Quilcene Oysteria Flexible Budget For the Month Ended August 31 The actual results for August were as follows: Actual pounds Revenue Expenses: Quilcene Oysteria Income Statement For the Month Ended August 31 Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income. Revenue Expenses: 7,800 $ 32,370 Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 2,730 3,500 Packing supplies Oyster bed maintenance 5,620 4,290 1,270 528 17,938 $ 14,432 7,800 $ 26,800 Required: Calculate the company's revenue and spending variances for August. 2,900 3,360 6,030 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. 4,020 1,080 1,148 18,538 $ 8,262
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,800 pounds of oysters in
August. The company's flexible budget for August appears below:
Actual pounds (q)
Revenue ($4.15q)
Expenses:
Packing supplies ($0.35q)
Oyster bed maintenance ($3,500)
Wages and salaries ($2,500 + $0.40q)
Shipping ($0.55q)
Utilities ($1,270)
Other ($450 + $0.019)
Total expense
Net operating income
Actual pounds
Revenue
For the Month Ended August 31
The actual results for August were as follows:
Expenses:
Quilcene Oysteria
Flexible Budget
Quilcene Oysteria
Income Statement
For the Month Ended August 31
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
7,800
$ 32,370
Quilcene Oysteria
Revenue and Spending Variances
For the Month Ended August 31
2,730
3,500
5,620
4,290
1,270
528
Required:
Calculate the company's revenue and spending variances for August.
17,938
$ 14,432
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.
7,800
$ 26,800
2,900
3,360
6,030
4,020
1,080
1,148
18,538
$ 8,262
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