Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000pounds 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 expense .............................................................. 20,580Net operating income .................................................. $11,420The actual results for August appear below:Quilcene OysteriaIncome StatementFor the Month Ended August 31Actual pounds ............................................................ 8,000Revenue .................................................................... $35,200Expenses:Packing supplies .................................................... 4,200Oyster bed maintenance ........................................ 3,100Wages and salaries ............................................... 5,640Shipping ................................................................. 6,950Utilities ................................................................... 810Other ...................................................................... 980Total expense ............................................................ 21,680Net operating income ................................................ $13,520Required:Prepare a report showing the company’s revenue and spending variances for August
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:
Prepare a report showing the company’s revenue and spending variances for August
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