80.2K

Verified Solution

Link Copied!

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000 pounds of oysters in August. The companys flexible budget for August appears below:

Quilcene Oysteria
Flexible Budget
For the Month Ended August 31
Actual pounds (q)	8,000
Revenue ($4.05q)	$ 32,400
Expenses:
Packing supplies ($0.25q)	2,000
Oyster bed maintenance ($3,100)	3,100
Wages and salaries ($2,100 + $0.45q)	5,700
Shipping ($0.55q)	4,400
Utilities ($1,230)	1,230
Other ($480 + $0.01q)	560
Total expense	16,990
Net operating income	$ 15,410

The actual results for August were as follows:

Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds	8,000
Revenue	$ 26,900
Expenses:
Packing supplies	2,170
Oyster bed maintenance	2,960
Wages and salaries	6,110
Shipping	4,130
Utilities	1,040
Other	1,180
Total expense	17,590
Net operating income	$ 9,310

Required:

Calculate the companys 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., zero variance). Input all amounts as positive values.

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. 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 were as follows: 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., zero variance). Input all amounts as positive values

Answer & Explanation Solved by verified expert

See Answer