Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,000 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) 7,000 Revenue ($4.10g) $ 28,700 Expenses: Packing supplies ($0.25q) Oyster bed maintenance ($3,300) Wages and salaries ($2,500 + $0.30g) Shipping ($0.65q) Utilities ($1,250) Other ($500 + $0.01q) Total expense 1,750 3,300 4,600 4,550 1,250 570 16,020 Net operating income $ 12,680 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,000 Revenue $ 26,800 Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping 1,920 3,160 5,010 4,280 1,060 1,190 Utilities Other Total expense 16,620 Net operating income $ 10,180 4,280 1,060 1,190 16,620 $ 10,180 Shipping Utilities 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 Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,000 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) 7,000 Revenue ($4.10g) $ 28,700 Expenses: Packing supplies ($0.25q) Oyster bed maintenance ($3,300) Wages and salaries ($2,500 + $0.30g) Shipping ($0.65q) Utilities ($1,250) Other ($500 + $0.01q) Total expense 1,750 3,300 4,600 4,550 1,250 570 16,020 Net operating income $ 12,680 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,000 Revenue $ 26,800 Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping 1,920 3,160 5,010 4,280 1,060 1,190 Utilities Other Total expense 16,620 Net operating income $ 10,180 4,280 1,060 1,190 16,620 $ 10,180 Shipping Utilities 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 Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income
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 7,000 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)
7,000
Revenue ($4.10g)
$ 28,700
Expenses:
Packing supplies ($0.25q)
Oyster bed maintenance ($3,300)
Wages and salaries ($2,500 + $0.30g)
Shipping ($0.65q)
Utilities ($1,250)
Other ($500 + $0.01q)
Total expense
1,750
3,300
4,600
4,550
1,250
570
16,020
Net operating income
$ 12,680
The actual results for August appear below:
Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds
7,000
Revenue
$ 26,800
Expenses:
Packing supplies
Oyster bed maintenance
Wages and salaries
Shipping
1,920
3,160
5,010
4,280
1,060
1,190
Utilities
Other
Total expense
16,620
Net operating income
$ 10,180
Transcribed Image Text:4,280
1,060
1,190
16,620
$ 10,180
Shipping
Utilities
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
Revenue and Spending Variances
For the Month Ended August 31
Revenue
Expenses:
Packing supplies
Oyster bed maintenance
Wages and salaries
Shipping
Utilities
Other
Total expense
Net operating income
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