FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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:
Quilcene Oysteria
Flexible Budget
For the Month Ended August 31
Actual pounds (g)
7,800
$ 32,370
Revenue ($4.159)
Expenses:
Packing supplies ($0.30g)
Oyster bed maintenance ($3, 500)
Wages and salaries ($2,109 + $0.45g)
Shipping ($8.55q)
Utilities ($1,280)
Other ($460 + $e.019)
Total expense
2,340
3, 5ee
5,610
4,290
1, 280
538
17,558
$ 14,812
Net operating income
The actual results for August appear below:
Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds
7,800
Revenue
$ 26,900
Expenses:
Packing supplies
Oyster bed maintenance
Wages and salaries
Shipping
Utilities
2,510
3, 36е
6,020
4, 020
1,e90
1,158
18,158
Other
Total expense
Net operating income
$ 8,742
Requlred:
Calculate the company's revenue and spending variances for August. (Indicate the effect of each varlance by selecting "F" for
favorable, "U" for unfavorable, and "None" for no effect (1.e., zero varlance). 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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