1,060 Other 1, 196 Total expense 19,046 Net operating income $ 7,754 Required: Calculate the company's revenue and spending variances for August. (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.)
1,060 Other 1, 196 Total expense 19,046 Net operating income $ 7,754 Required: Calculate the company's revenue and spending variances for August. (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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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answer with must must explanation , computation for each parts and steps answer in text form no copy from other answer
Transcribed Image Text:Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,600 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) 7,600 Revenue ($4.15q) $ 31,540 Expenses: Packing supplies
($0.40q) 3,040 Oyster bed maintenance ($3,300) 3,300 Wages and salaries ($2,300+ $0.35q) 4,960 Shipping ($0.70q) 5, 320 Utilities ($1,250) 1, 250 Other ($500 + $
0.01q) 576 Total expense 18, 446 Net operating income $ 13,094 The actual results for August were as follows: Quilcene Oysteria Income Statement For the Month Ended
August 31 Actual pounds 7,600 Revenue $ 26, 800 Expenses: Packing supplies 3,210 Oyster bed maintenance 3, 160 Wages and salaries 5, 370 Shipping 5,050 Utilities
1,060 Other 1, 196 Total expense 19,046 Net operating income $ 7,754 Required: Calculate the company's revenue and spending variances for August. (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.)
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