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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: Quilcene Oysteria
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: Quilcene Oysteria Flexible Budget
For the Month Ended August 31
Actual pounds (q) 8,000
Revenue ($4.00q) $32,000
Expenses:
Packing supplies ($0.50q) 4,000
Oyster bed maintenance ($3,200) 3,200
Wages and salaries ($2,900 + $0.30q) 5,300
Shipping ($0.80q) 6,400
Utilities ($830) 830
Other ($450 + $0.05q) 850
Total expense 20,580
Net operating income $11,420
The actual results for August appear below:
Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds 8000
Revenue 35,200
Expenses:
Packing supplies .4200
Oyster bed maintenance .3100
Wages and salaries .5640
Shipping . .6950
Utilities .810
Other .980
Total expense .21,680
Net operating income .13,520
Required:
Prepare a report showing the company's revenue and spending variances for August.
Answer:$ 2,100.00 FExplanation:Preparation of the report showing the company's revenue and spending variances for August.QUILCENE OYSTERIAREVENUE AND SPENDING VARIANCESFor the Month Ended August 31Actual Results Flexible BudgetRevenue and Spending VariancesPounds 8,000 8,000Revenue ($4.00q) $35,200- $32,000 =$3,200 FExpenses:Packing supplies ($0.50q)4,200-4,000=200 UOyster bed maintenance ($3,200)3,100-3,200=100 FWages and salaries ($2,900 + $0.30q) 5,640-5,300=340 UShipping ($0.80q)6,950-6,400=550 UUtilities ($830) 810-830=20 FOther($450 + $0.05q) 980 -850=130 UTOTAL EXPENSE21,680 20,580 1,100 UNET OPERATING INCOME$ 13,520 $ 11,420 $ 2,100 F(35,200-21,680=$ 13,520)($32,000-20,580=$11,420)($3,200-1,100=$2,100)Summary:Quilcene OysteriaRevenues and Spending VarianceFor the Month ended August 31Revenue $ 3,200.00 FExpenses:Packing supplies $ 200.00 UOyster Bed Maintenance $ 100.00 FWages and Salaries $ 340.00 UShipping $ 550.00 UUtilities $ 20.00 FOther $ 130.00 UTotal Expenses $ 1,100.00 UNet Operating Income $ 2,100.00 FTherefore the company's revenue and spending variances for August will be :$ 2,100.00 F...