Required: Calculate the company's revenue and spending variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zer variance). Input all amounts as positive values. Revenue Expenses: Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other
Required: Calculate the company's revenue and spending variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zer variance). Input all amounts as positive values. Revenue Expenses: Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Step 1: Introduction:
Variance analysis is very important technique of management accounting, in which actual costs and revenues are compared with budgeted costs and revenues. Variances can be favourable or unfavourable for the organisation.The difference between budgeted result and actual result can be favorable or unfavorable. If the actual cost is higher than the budgeted cost , then it will be result in Unfavorable situation and vise a versa. If the actual revenue is higher than the budgeted revenue, then it will result in Favorable situation and vise a versa.
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