Calculate the company’s revenue and spending variances for August
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xercise 9-2 (Static) Prepare a Report Showing Revenue and Spending Variances [LO9-2]
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 | 8,000 |
---|---|
Revenue | $ 35,200 |
Expenses: | |
Packing supplies | 4,200 |
Oyster bed maintenance | 3,100 |
Wages and salaries | 5,640 |
Shipping | 6,950 |
Utilities | 810 |
Other | 980 |
Total expense | 21,680 |
Net operating income | $ 13,520 |
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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- Exercise 9-15 (Algo) Flexible Budgets and Revenue and Spending Variances [LO9-1, LO9-3] Via Gelato, a popular neighborhood gelato shop, provided the following cost formulas and actual results for the month of June: Fixed Variable Element per Element per Actual Total Month Liter for June Revenue $ 23.00 $ 140,540 Raw materials $ 5.75 $ 37,030 Wages Utilities $ 6,700 $ 2.50 $ 21,800 $ 2,730 $ 1.30 $ 11,600 CES Rent $ 3,700 Insurance $ 2,450 Miscellaneous $ 760 1.45 $ 3,700 $ 2,450 $9,390 While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example, wages should be $6,700 plus $2.50 per liter of gelato sold and the actual wages for June were $21,800. Via Gelato expected to sell 6,100 liters in June but actually sold 6,300 liters. Required: Calculate Via Gelato's revenue and spending variances for June. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for…Exercise 17-26 (Algo) Sales Mix and Quantity Variances (LO 17-4) A-Zone Media sells two models of e-readers, The budgeted price per unit for the wireless model is $200 and the budgeted price per unit for the wireless and cellular model is $432. The master budget called for sales of 10,800 wireless models and 2,900 wireless and cellular models during the current year, Actual results showed sales of 8,300 wireless mnodels, with a price of $240 per unit, and 4,500 wireless and cellular models, with a price of $560 per unit. The standard variable cost per unit is $88 for a wireless model and $200 for a wireless and cellular model. Requlred: a. Compute the activity variance for these data. b. Compute the mix and quantity varlance for these data. (Enter your answers rounded to the nearest whole dollar.) Complete this question by entering your answers In the tabs below. Required A Required B Compute the activity variance for these data. (Do not round Intermediate calculations. Indicate the…BEE Required Informatlon [The following information applies to the questions displayed below.] Morganton Company makes one product and it provided the following information to help prepare the master budget a. The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8,300, 14,000, 16.000, and 17,000 units, respectively. All sales are on credit. b. Forty percent of credit sales are collected in the month of the sale and 60% in the following month. C. The ending finished goods inventory equals 25% of the following month's unit sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound. e. Forty percent of raw materials purchases are paid for in the month of purchase and 60% in the following month. f. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two…
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- possible The actual information pertains to the third quarter. As part of the budgeting process, the Duck Decoy Department of Paralith Incorporated had developed the following static budget for the third quarter. Duck Decoy is in the process of preparing the flexible budget and understanding the results. ActualResults FlexibleBudget StaticBudget Sales volume (in units) 20,000 19,000 Sales revenues $235,000 2$ $230,000 Variable costs 154,000 $ 185,000 Contribution margin $81,000 2$ $45,000 Fixed costs 37,000 35,000 Operating profit $44,000 2$ $10,000 The flexible budget will report for variable costs. O A. $146,300 O B. $185,0000 OC. $31,000 O D. $194,737国 Requlred Informatlon (The following information applies to the questions displayed below.] Morganton Company makes one product and it provided the following information to help prepare the master budget a. The budgeted selling price per unit is $60. Budgeted unit sales for June, July, August, and September are 8,300. 14,000, 16,000, and 17,000 units, respectively. All sales are on credit. b. Forty percent of credit sales are collected in the month of the sale and 60% in the following month. c. The ending finished goods inventory equals 25% of the following month's unit sales. d. The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.00 per pound. e. Forty percent of raw materials purchases are paid for in the month of purchase and 60% in the following month. f. The direct labor wage rate is $15 per hour. Each unit of finished goods requires two…Problem 8-24 (Algo) Cash Budget with Supporting Schedules (LO8-2, LO8-4, LO8-8] Garden Sales, Incorporated, usually has to borrow money during the second quarter to support peak sales of lawn care equipment during May. It gathered the following information to prepare a cash budget for the quarter: a. Budgeted monthly absorption costing income statements for April-July are: April May June July Sales Cost of goods sold $ 660,000 462,000 Gross margin Selling and administrative expenses: Selling expense Administrative expense* Total selling and administrative expenses Net operating income 198,000 $ 830,000 581,000 249,000 $ 540,000 378,000 $ 440,000 308,000 162,000 132,000 84,000 103,000 65,000 44,000 47,000 131,000 63,200 166,200 39,800 104,800 42,000 86,000 $ 67,000 $ 82,800 $ 57,200 $ 46,000 *Includes $26,000 of depreciation each month. b. Sales are 20% for cash and 80% on account. c. Sales on account are collected over a three-month period with 10% collected in the month of sale, 70%…