Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,100 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) 7,100 $ 29,820 Revenue ($4.20g) Expenses: Packing supplies ($0.25g) Oyster bed maintenance ($3,100) Wages and salaries ($2,400 + $0.30q) Shipping ($0.80g) Utilities ($1,260) Other ($470 + $0.01g) Total expense 1,775 3,100 4,530 5,680 1,260 541 16,886 $ 12,934 Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,100 Revenue $ 26,600 Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities 1,945 2,960 4,940 5,410 1,070 1,161 17,486 $ 9,114 Other Total expense Net operating income 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.)
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,100 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) 7,100 $ 29,820 Revenue ($4.20g) Expenses: Packing supplies ($0.25g) Oyster bed maintenance ($3,100) Wages and salaries ($2,400 + $0.30q) Shipping ($0.80g) Utilities ($1,260) Other ($470 + $0.01g) Total expense 1,775 3,100 4,530 5,680 1,260 541 16,886 $ 12,934 Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,100 Revenue $ 26,600 Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities 1,945 2,960 4,940 5,410 1,070 1,161 17,486 $ 9,114 Other Total expense Net operating income 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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Transcribed Image Text:Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,100 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)
7,100
$ 29,820
Revenue ($4.20g)
Expenses:
Packing supplies ($0.25g)
Oyster bed maintenance ($3,100)
Wages and salaries ($2,400 + $0.30q)
Shipping ($0.80g)
Utilities ($1,260)
Other ($470 + $0.01g)
Total expense
1,775
3,100
4,530
5,680
1,260
541
16,886
$ 12,934
Net operating income
The actual results for August appear below:
Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds
7,100
Revenue
$ 26,600
Expenses:
Packing supplies
Oyster bed maintenance
Wages and salaries
Shipping
Utilities
1,945
2,960
4,940
5,410
1,070
1,161
17,486
$ 9,114
Other
Total expense
Net operating income
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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