Exercise 9-3 (Algo) Revenue and Spending Variances (LO9-3] 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 (9) 7,400 $ 30,340 Revenue ($4.109) Expenses: Packing supplies ($0.359) Oyster bed maintenance ($3,100) Wages and salaries ($2,400 + $0.359) Shipping ($0.709) Utilities ($1,260) Other ($460 + $0.019) Total expense Net operating income 2,590 3,100 4,990 5,180 1,260 534 17,654 $ 12,686 The actual results for August were as follows: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,400 $ 27, 100 Revenue Expenses : Packing supplies Oyster bed maintenance Wages and salaries 2,760 2,960 5,400 NEV CLLUE Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income 2,760 2,960 5,400 4,910 1,070 1,154 18, 254 $ 8, 846 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 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 2. 7 Exercise 9-4 (Algo) Prepare a Flexible Budget Performance Report [LO9-4] 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: ok Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Flexible Planning Results Budget Budget 60 60 58 ht Flights (9) ht $ 16,100 $ 21,000 $20,300 ces Revenue ($350.009) Expenses : Wages and salaries ($3,600 + $89.009) Fuel ($32.009) Airport fees ($890 + $34.00) Aircraft depreciation ($8.009) Office expenses ($230 + $1.009) Total expense Net operating income 8,902 8,940 8,762 2,086 1,920 1,856 2,815 2,930 2,862 480 480 464 458 290 288 14,741 14,560 14,232 $ 1,359 $ 6,440 $ 6,068 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 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.) ok Vulcan Flyovers Flexible Budget Performance Report For the Month Ended July 31 Flexible Budget ut Actual Results Planning Budget 58 ht Flights 60 60 Inces $ 16,100 $ 21,000 $ 20,300 Revenue Expenses Wages and salaries 8,902 2,086 8,940 1,920 Fuel 8,762 1,856 2,862 2,815 2,930 480 480 Airport fees Aircraft depreciation Office expenses Total expense Net operating income 464 288 458 290 14,741 14,232 14,560 6,440 $ 1,359 $ $ 6,068
