1.
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 ($4.05g) $ 28, 350 Expenses : Packing supplies ($0.40q) 2,800 Oyster bed maintenance ($3,100) 3,100 Wages and salaries ($2, 200 + $0.35g) 4, 650 Shipping ($0.60q) 4, 200 Utilities ($1,230) 1, 230 Other ($510 + $0.01g) 580 Total expense 16 , 560 Net operating income $ 11, 790The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,000 Revenue $ 27, 300 Expenses : Packing supplies 2,970 Oyster bed maintenance 2,960 Wages and salaries 5, 060 Shipping 3,930 Utilities 1, 040 other 1, 200 Total expense 17, 160 Net operating income $ 10, 140Required: 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 [l.e., zero variance}. Input all amounts as positive values.) Expenses: Packing supplies Oyster bed maintenance Wages and salaries Nat operating income Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company's operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Flexible Planning Results Budget Budget Flights (q) 59 59 57 Revenue ($350 .00g) $ 16, 100 $ 20, 650 $ 19, 950 Expenses : Wages and salaries ($3, 700 + $86.00g) 8, 742 8, 774 8, 602 Fuel ($33.00q) 2, 111 1, 947 1, 881 Airport fees ($800 + $32.00q) 2, 548 2, 688 2, 624 Aircraft depreciation ($10.00g) 590 590 570 Office expenses ($240 + $1.00q) 467 299 297 Total expense 14, 458 14, 298 13,974 Net operating income $ 1, 642 $ 6, 352 $ 5,976 The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount.Required: 1. Prepare a flexible budget performance report for July that includes revenue and spending variances and activity variances. (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.) Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Actual Results Flexible Planning Budget Budget Flights 59 59 57 Revenue 16,100 $ 20,650 19,950 Expenses: Wages and salaries 8,742 8.774 8,602 Fuel 2, 111 1,947 1,881 Airport fees 2,548 2,688 2,624 Aircraft depreciation 590 590 570 Office expenses 467 299 297 Total expense 14,458 14,298 13,974 Net operating income 1,642 6,352 5,976
