Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 1,600 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 ($0.35q) 2,660 Oyster bed maintenance ($3,100) 3,100 Wages and salaries ($2,400 + $0.409) 5,440 Shipping ($0.709) 5,320 Utilities ($1,220) 1,220 Other ($440 + $0.019) 516 Total expenses 18,256 $ 13,284 Net operating income The actual results for August were as follows: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expenses Net operating income Required: 7,600 $ 27,400 2,830 2,960 5,850 5,050 1,030 1,136 18,856 $ 8,544 Calculate the company's revenue and spending variances for August.
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 1,600 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 ($0.35q) 2,660 Oyster bed maintenance ($3,100) 3,100 Wages and salaries ($2,400 + $0.409) 5,440 Shipping ($0.709) 5,320 Utilities ($1,220) 1,220 Other ($440 + $0.019) 516 Total expenses 18,256 $ 13,284 Net operating income The actual results for August were as follows: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expenses Net operating income Required: 7,600 $ 27,400 2,830 2,960 5,850 5,050 1,030 1,136 18,856 $ 8,544 Calculate the company's revenue and spending variances for August.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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![Exercise 9-3 (Algo) Revenue and Spending Variances [LO9-3]
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)
Revenue ($4.15q)
Expenses:
Packing supplies ($0.35q)
Oyster bed maintenance ($3,100)
Wages and salaries ($2,400 + $0.40q)
Shipping ($0.70q)
Utilities ($1,220)
Other ($440 + $0.019)
Total expenses
Net operating income
The actual results for August were as follows:
Quilcene Oysteria
Income Statement
For the Month Ended August 31
7,600
$ 31,540
2,660
3,100
5,440
5,320
1,220
516
18,256
$ 13,284
Actual pounds
Revenue
Expenses:
Packing supplies
Oyster bed maintenance
Wages and salaries
Shipping
Utilities
Other
Total expenses
Net operating income
Required:
7,600
$ 27,400
2,830
2,960
5,850
5,050
1,030
1,136
18,856
$ 8,544
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.
Revenue
Quilcene Oysteria
Revenue and Spending Variances
For the Month Ended August 31
Expenses:
Packing supplies
Oyster bed maintenance
Wages and salaries
Shipping
Utilities
Other
Total expenses
Net operating income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F101d53ef-789c-4341-b03e-15376bf19159%2F0ca12d8c-d69f-4ea5-9021-fe6634049ff2%2Fc8zw01_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 9-3 (Algo) Revenue and Spending Variances [LO9-3]
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)
Revenue ($4.15q)
Expenses:
Packing supplies ($0.35q)
Oyster bed maintenance ($3,100)
Wages and salaries ($2,400 + $0.40q)
Shipping ($0.70q)
Utilities ($1,220)
Other ($440 + $0.019)
Total expenses
Net operating income
The actual results for August were as follows:
Quilcene Oysteria
Income Statement
For the Month Ended August 31
7,600
$ 31,540
2,660
3,100
5,440
5,320
1,220
516
18,256
$ 13,284
Actual pounds
Revenue
Expenses:
Packing supplies
Oyster bed maintenance
Wages and salaries
Shipping
Utilities
Other
Total expenses
Net operating income
Required:
7,600
$ 27,400
2,830
2,960
5,850
5,050
1,030
1,136
18,856
$ 8,544
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.
Revenue
Quilcene Oysteria
Revenue and Spending Variances
For the Month Ended August 31
Expenses:
Packing supplies
Oyster bed maintenance
Wages and salaries
Shipping
Utilities
Other
Total expenses
Net operating income
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