Introduction To Managerial Accounting
8th Edition
ISBN: 9781259917066
Author: BREWER, Peter C., Garrison, Ray H., Noreen, Eric W.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 9, Problem 2E
Prepare a Report Shong Revenue and Spending Variances
Quilcene Oysteria farms and sells oysters in the Pacific Noithwest. The company harvested and sold 8,000 pounds of oysters in August. The company’s flexible budget for August appears below:
The actual results for August appear below:
Required:
Calculate the company’s revenue and spending variances for August. (Hint: Refer to Exhibit 9−6.)
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ces
W
Actual pounds (q)
Revenue ($4.10g)
For the Month Ended August 31
Quilcene Oysteria
Flexible Budget
Expenses:
Packing supplies ($0.30q)
Oyster bed maintenance ($3,000)
Wages and salaries ($2,400 + $0.30q)
Shipping ($0.60q)
Utilities ($1,270)
Other ($470 + $0.019)
Total expense
Net operating income
The actual results for August appear below:
Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds
Revenue
Expenses:
Packing supplies
Oyster bed maintenance
Wages and salaries.
Shipping
Utilities
Other
Total expense
Net operating income
7,200
$ 27,100
2,330
2,860
4,970
4,050
1,080
1,162
16,452
$ 10,648
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changes are estimated to reduce monthly operating expenses by a factor of 0.99 beginning in January.
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TV Timers, Incorporated, manufactures time control devices for TV's. The firm has the following operating data for its operations in July:
Actual market size
Budgeted market size
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Actual average contribution margin
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A. $1,590 favorable.
B. $1,784 favorable.
C. $1,740 favorable.
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Chapter 9 Solutions
Introduction To Managerial Accounting
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