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 OysteriaFlexible BudgetFor the Month Ended August 31Actual pounds (q)8,000Revenue ($4.00q)$ 32,000Expenses: Packing supplies ($0.50q)4,000Oyster bed maintenance ($3,200)3,200Wages and salaries ($2,900 + $0.30q)5,300Shipping ($0.80q)6,400Utilities ($830)830Other ($450 + $0.05q)850Total expense20,580Net operating income$ 11,420 The actual results for August appear below: Quilcene OysteriaIncome StatementFor the Month Ended August 31Actual pounds8,000Revenue$ 35,200Expenses: Packing supplies4,200Oyster bed maintenance3,100Wages and salaries5,640Shipping6,950Utilities810Other980Total expense21,680Net 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.)

Standard cost means as follows under:- Standard costs are estimates of the actual costs in a…

Answered: Calculate the company’s revenue and…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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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