Quilcene Oysteria farms and sells oysters in the Pacific Northwest The company harvested and sold 7,300 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 ) 7,300 Revenue ($4 15 q ) $ 30,295 Expenses Packing supplies ($0 30 q ) 2,190 Oyster bed maintenance ($3,300) 3,300 Wages and salaries ($2,400 $0 25 q ) 4,225 Shipping ($0 55 q ) 4,015 Utilities ($1,260) 1,260 Other ($460 $0 01 q ) 533 Total expense 15,523 Net operating income $ 14,772 The actual results for August appear below Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,300 Revenue $ 26,500 Expenses Packing supplies 2,360 Oyster bed maintenance 3,160 Wages and salaries 4,635 Shipping 3,745 Utilities 1,070 Other 1,153 Total expense 16,123 Net operating income $ 10,377 Required 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 )

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 21, 2024

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,300 pounds of oysters in August. The companys flexible budget

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,300 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)	7,300
Revenue ($4.15q)	$ 30,295
Expenses:
Packing supplies ($0.30q)	2,190
Oyster bed maintenance ($3,300)	3,300
Wages and salaries ($2,400 + $0.25q)	4,225
Shipping ($0.55q)	4,015
Utilities ($1,260)	1,260
Other ($460 + $0.01q)	533
Total expense	15,523
Net operating income	$ 14,772

The actual results for August appear below:

Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds	7,300
Revenue	$ 26,500
Expenses:
Packing supplies	2,360
Oyster bed maintenance	3,160
Wages and salaries	4,635
Shipping	3,745
Utilities	1,070
Other	1,153
Total expense	16,123
Net operating income	$ 10,377

Required:

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.)