Exercise 9-2 (Algo) Prepare a Report Showing Revenue and Spending Variances [LO9-2] Quilcene Oysteria farms and...

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Exercise 9-2 (Algo) Prepare a Report Showing Revenue and Spending Variances [LO9-2] Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,300 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 ($3,500) Wages and salaries ($2,400 + $0.40q) Shipping ($0.609) Utilities ($1,230) Other ($470 + $0.019) Total expense Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 7,300 $ 30,660 2,190 3,500 5,320 4,380 1,230 543 17,163 $ 13,497 Actual pounds Revenue Expenses: Packing supplies Oyster bed maintenance. Wages and salaries Shipping Utilities Other Total expense Net operating income Required: 7,300 $ 27,300 2,360 3,360 5,730 4,110 1,040 1,163 17,763 $ 9,537 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 Exercise 9-4 (Algo) Direct Materials Variances [LO9-4] Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,100 helmets, using 1,860 kilograms of plastic. The plastic cost the company $12,276. According to the standard cost card, each helmet should require 0.54 kilograms of plastic, at a cost of $7.00 per kilogram. Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,100 helmets? 2. What is the standard materials cost allowed (SQ SP) to make 3,100 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance? (For requirements 3 and 4, 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. Do not round intermediate calculations.) 1. Standard quantity of kilograms allowed 2. Standard cost allowed for actual output 3. Materials spending variance 4. Materials price variance 4. Materials quantity variance Exercise 9-8 (Algo) Flexible Budget (LO9-1] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month Cost per Car Washed $ 0.60 $ 1,000 $ 0.05 $ 0.15 $ 4,800 $ 0.30 $ 8,500 $ 2,000 $ 1,600 $ 0.05 For example, electricity costs are $1,000 per month plus $0.05 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.80 per car washed. Required: Prepare the company's flexible budget for August. Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 0 0 Exercise 9-7 (Algo) Planning Budget [LO9-1] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Cost per Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month $ 0.60 $ 1,400 $ 0.06 $ 0.25 $ 4,600 $ 0.30 $ 8,500 $ 2,100 $ 1,800 $ 0.04 For example, electricity costs are $1,400 per month plus $0.06 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.10 per car washed. Required: Prepare the company's planning budget for August. Lavage Rapide Planning Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 0 Exercise 9-1 (Algo) Prepare a Flexible Budget [LO9-1] Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) Revenue ($420.009) Expenses: Wages and salaries ($11,200 + $124.009) Supplies ($5.009) Equipment rental ($2,000+ $21.009) Insurance ($3,800) Miscellaneous ($540+ $1.48q) Total expense Net operating income 300 $ 126,000 48,400 1,500 8,300 3,800 984 62,984 $ 63,016 During May, the company's actual activity was 290 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.) Answer is complete but not entirely correct. Puget Sound Divers Flexible Budget For the Month Ended May 31 Actual diving-hours 290 Revenue $ 121,800 Expenses: Wages and salaries 48,420 Supplies 1,740 Equipment rental 8,590 Insurance 3,900 Miscellaneous 912 Total expense 63,562 Net operating income $ 58,238 Exercise 9-5 (Algo) Direct Labor Variances [LO9-5] SkyChefs, Incorporated, prepares in-flight meals for a number of major airlines. One of the company's products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 6,200 of these meals using 1,200 direct labor-hours. The company paid its direct labor workers a total of $10,800 for this work, or $9.00 per hour. According to the standard cost card for this meal, it should require 0.20 direct labor-hours at a cost of $8.50 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 6,200 meals? 2. What is the standard labor cost allowed (SH SR) to prepare 6,200 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? (For requirements 3 and 4, 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. Do not round intermediate calculations.) 1. Standard labor-hours allowed 2. Standard labor cost allowed $ 1,240 10,540 3. Labor spending variance $ 260 U 4. Labor rate variance $ 600 U 4. Labor efficiency variance $ 340 F Exercise 9-2 (Algo) Prepare a Report Showing Revenue and Spending Variances [LO9-2] Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,300 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 ($3,500) Wages and salaries ($2,400 + $0.40q) Shipping ($0.609) Utilities ($1,230) Other ($470 + $0.019) Total expense Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 7,300 $ 30,660 2,190 3,500 5,320 4,380 1,230 543 17,163 $ 13,497 Actual pounds Revenue Expenses: Packing supplies Oyster bed maintenance. Wages and salaries Shipping Utilities Other Total expense Net operating income Required: 7,300 $ 27,300 2,360 3,360 5,730 4,110 1,040 1,163 17,763 $ 9,537 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 Exercise 9-4 (Algo) Direct Materials Variances [LO9-4] Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,100 helmets, using 1,860 kilograms of plastic. The plastic cost the company $12,276. According to the standard cost card, each helmet should require 0.54 kilograms of plastic, at a cost of $7.00 per kilogram. Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,100 helmets? 2. What is the standard materials cost allowed (SQ SP) to make 3,100 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance? (For requirements 3 and 4, 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. Do not round intermediate calculations.) 1. Standard quantity of kilograms allowed 2. Standard cost allowed for actual output 3. Materials spending variance 4. Materials price variance 4. Materials quantity variance Exercise 9-8 (Algo) Flexible Budget (LO9-1] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month Cost per Car Washed $ 0.60 $ 1,000 $ 0.05 $ 0.15 $ 4,800 $ 0.30 $ 8,500 $ 2,000 $ 1,600 $ 0.05 For example, electricity costs are $1,000 per month plus $0.05 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.80 per car washed. Required: Prepare the company's flexible budget for August. Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 0 0 Exercise 9-7 (Algo) Planning Budget [LO9-1] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Cost per Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month $ 0.60 $ 1,400 $ 0.06 $ 0.25 $ 4,600 $ 0.30 $ 8,500 $ 2,100 $ 1,800 $ 0.04 For example, electricity costs are $1,400 per month plus $0.06 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.10 per car washed. Required: Prepare the company's planning budget for August. Lavage Rapide Planning Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 0 Exercise 9-1 (Algo) Prepare a Flexible Budget [LO9-1] Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Budgeted diving-hours (q) Revenue ($420.009) Expenses: Wages and salaries ($11,200 + $124.009) Supplies ($5.009) Equipment rental ($2,000+ $21.009) Insurance ($3,800) Miscellaneous ($540+ $1.48q) Total expense Net operating income 300 $ 126,000 48,400 1,500 8,300 3,800 984 62,984 $ 63,016 During May, the company's actual activity was 290 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.) Answer is complete but not entirely correct. Puget Sound Divers Flexible Budget For the Month Ended May 31 Actual diving-hours 290 Revenue $ 121,800 Expenses: Wages and salaries 48,420 Supplies 1,740 Equipment rental 8,590 Insurance 3,900 Miscellaneous 912 Total expense 63,562 Net operating income $ 58,238 Exercise 9-5 (Algo) Direct Labor Variances [LO9-5] SkyChefs, Incorporated, prepares in-flight meals for a number of major airlines. One of the company's products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 6,200 of these meals using 1,200 direct labor-hours. The company paid its direct labor workers a total of $10,800 for this work, or $9.00 per hour. According to the standard cost card for this meal, it should require 0.20 direct labor-hours at a cost of $8.50 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 6,200 meals? 2. What is the standard labor cost allowed (SH SR) to prepare 6,200 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? (For requirements 3 and 4, 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. Do not round intermediate calculations.) 1. Standard labor-hours allowed 2. Standard labor cost allowed $ 1,240 10,540 3. Labor spending variance $ 260 U 4. Labor rate variance $ 600 U 4. Labor efficiency variance $ 340 F