Question
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,500 pounds of oysters in August. The companys flexible budget
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,500 pounds of oysters in August. The companys flexible budget for August appears below:
| Quilcene Oysteria | ||
| Flexible Budget | ||
| For the Month Ended August 31 | ||
| Actual pounds (q) | 7,500 | |
| Revenue ($4.20q) | $ | 31,500 |
| Expenses: | ||
| Packing supplies ($0.30q) | 2,250 | |
| Oyster bed maintenance ($3,500) | 3,500 | |
| Wages and salaries ($2,600 + $0.50q) | 6,350 | |
| Shipping ($0.80q) | 6,000 | |
| Utilities ($1,230) | 1,230 | |
| Other ($450 + $0.01q) | 525 | |
| Total expense | 19,855 | |
| Net operating income | $ | 11,645 |
The actual results for August appear below:
| Quilcene Oysteria | ||
| Income Statement | ||
| For the Month Ended August 31 | ||
| Actual pounds | 7,500 | |
| Revenue | $ | 27,300 |
| Expenses: | ||
| Packing supplies | 2,420 | |
| Oyster bed maintenance | 3,360 | |
| Wages and salaries | 6,760 | |
| Shipping | 5,730 | |
| Utilities | 1,040 | |
| Other | 1,145 | |
| Total expense | 20,455 | |
| Net operating income | $ | 6,845 |
Req
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,500 pounds of oysters in August. The companys flexible budget for August appears below:
| Quilcene Oysteria | ||
| Flexible Budget | ||
| For the Month Ended August 31 | ||
| Actual pounds (q) | 7,500 | |
| Revenue ($4.20q) | $ | 31,500 |
| Expenses: | ||
| Packing supplies ($0.30q) | 2,250 | |
| Oyster bed maintenance ($3,500) | 3,500 | |
| Wages and salaries ($2,600 + $0.50q) | 6,350 | |
| Shipping ($0.80q) | 6,000 | |
| Utilities ($1,230) | 1,230 | |
| Other ($450 + $0.01q) | 525 | |
| Total expense | 19,855 | |
| Net operating income | $ | 11,645 |
The actual results for August appear below:
| Quilcene Oysteria | ||
| Income Statement | ||
| For the Month Ended August 31 | ||
| Actual pounds | 7,500 | |
| Revenue | $ | 27,300 |
| Expenses: | ||
| Packing supplies | 2,420 | |
| Oyster bed maintenance | 3,360 | |
| Wages and salaries | 6,760 | |
| Shipping | 5,730 | |
| Utilities | 1,040 | |
| Other | 1,145 | |
| Total expense | 20,455 | |
| Net operating income | $ | 6,845 |
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,500 pounds of oysters in August. The companys flexible budget for August appears below:
| Quilcene Oysteria | ||
| Flexible Budget | ||
| For the Month Ended August 31 | ||
| Actual pounds (q) | 7,500 | |
| Revenue ($4.20q) | $ | 31,500 |
| Expenses: | ||
| Packing supplies ($0.30q) | 2,250 | |
| Oyster bed maintenance ($3,500) | 3,500 | |
| Wages and salaries ($2,600 + $0.50q) | 6,350 | |
| Shipping ($0.80q) | 6,000 | |
| Utilities ($1,230) | 1,230 | |
| Other ($450 + $0.01q) | 525 | |
| Total expense | 19,855 | |
| Net operating income | $ | 11,645 |
The actual results for August appear below:
| Quilcene Oysteria | ||
| Income Statement | ||
| For the Month Ended August 31 | ||
| Actual pounds | 7,500 | |
| Revenue | $ | 27,300 |
| Expenses: | ||
| Packing supplies | 2,420 | |
| Oyster bed maintenance | 3,360 | |
| Wages and salaries | 6,760 | |
| Shipping | 5,730 | |
| Utilities | 1,040 | |
| Other | 1,145 | |
| Total expense | 20,455 | |
| Net operating income | $ | 6,845 |
Calculate the companys 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.)
uired:
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 incomeStep by Step Solution
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Evidence Based Audit In General Practice
Authors: Richard Baker, Robin C. Fraser MD FRCGP, Mayur Lakhani MRCP MRCGP DCH
1st Edition
075063104X, 978-0750631044
