Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,400 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 (4) Revenue ($4.20g) Expenses: Packing supplies ($0.300) Oyster bed maintenance ($3,200) Wages and salaries ($2,200+ $0.509) Shipping ($0.80g) utilities ($1,200) Other ($460+ $0.019) Total expense 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 expense Net operating income 7,400 $ 31,080 2,220 3,200 5,900 5,920 1,200 534 18,974 $ 12,106 7,400 $ 27,000 2,390 3,060 6,310 5,650 1,010 1,154 19,574 $ 7,426 Tim 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 va 4
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,400 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 (4) Revenue ($4.20g) Expenses: Packing supplies ($0.300) Oyster bed maintenance ($3,200) Wages and salaries ($2,200+ $0.509) Shipping ($0.80g) utilities ($1,200) Other ($460+ $0.019) Total expense 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 expense Net operating income 7,400 $ 31,080 2,220 3,200 5,900 5,920 1,200 534 18,974 $ 12,106 7,400 $ 27,000 2,390 3,060 6,310 5,650 1,010 1,154 19,574 $ 7,426 Tim 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 va 4
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
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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Transcribed Image Text:Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,400 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 ($4.20q)
Expenses:
Packing supplies ($0.30q)
Oyster bed maintenance ($3,200)
Wages and salaries ($2,200 + $0.50q)
Shipping ($0.809)
Utilities ($1,200)
Other ($460 + $0.019)
Total expense
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 expense
Net operating income
7,400
$ 31,080
2,220
3,200
5,900
5,920
1,200
534
18,974
$ 12,106
7,400
$ 27,000
2,390
3,060
6,310
5,650
1,010
1,154
19,574
$ 7,426
Tim
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 val
hs
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