Question
I need some help with this problem below: Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000 pounds
I need some help with this problem below:
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)........................................
Revenue ($4.00q).........................................
Expenses:
Packing supplies ($0.50q).......................
Oyster bed maintenance ($3,200)............
Wages and salaries ($2,900 + $0.30q).....
Shipping ($0.80q)....................................
Utilities ($830).........................................
Other ($450 + $0.05q).............................
Total expense...............................................
Net operating income..................................
8,000
$32,000
4,000
3,200
5,300
6,400
830
850
20,580
$11,420
The actual results for August appear below:
Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds..............................................
Revenue.......................................................
Expenses:
Packing supplies......................................
Oyster bed maintenance..........................
Wages and salaries..................................
Shipping...................................................
Utilities....................................................
Other........................................................
Total expense...............................................
Net operating income..................................
8,000
$35,200
4,200
3,100
5,640
6,950
810
980
21,680
$13,520
Required:
Prepare a report showing the company's revenue and spending variances for August.
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