Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000 pounds
Question:
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 31Actual pounds (q)8,000Revenue ($4.00q)$32,000Expenses:Packing supplies ($0.50q)
4,000Oyster bed maintenance ($3,200)
3,200Wages and salaries ($2,900 + $0.30q)
5,300Shipping ($0.80q)
6,400Utilities ($830)
830Other ($450 + $0.05q)
850Total expense20,580Net operating income$11,420
The actual results for August appear below:
Quilcene Oysteria
Income Statement
For the Month Ended August 31Actual pounds8,000Revenue$35,200Expenses:Packing supplies
4,200Oyster bed maintenance
3,100Wages and salaries
5,640Shipping
6,950Utilities
810Other
980Total expense21,680Net operating income$ 13,520
Required:
Calculate the company's revenue and spending variances for August.