Prepare a Report Showing Revenue and Spending Variances [LO3]

Olympia Bivalve farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,000 pounds of oysters in July. The company’s flexible budget for July appears below:

The actual results for July appear below:

Required:
Prepare a report showing the company’s revenue and spending variances for July.

Transcribed Image Text:

Olympia Bivalve Flexible Budget For the Month Ended July 31 Actual pounds (q)... Revenue ($4.20q).. 7,000 $29,400 Expenses: Packing supplies ($0.40q).. 2,800 Oyster bed maintenance ($3,600) 3,600 Wages and salaries ($2,540 + $0.50g) 6,040 Shipping ($0.75q)... 5,250 Utilities ($1,260). 1,260 Other ($5 10+$0.05q) 860 Total expense... 19,810 Net operating income. $ 9,590