Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,600 pounds of oysters in August. The companys flexible budget

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,600 pounds of oysters in August. The companys flexible budget for August appears below:

Quilcene OysteriaFlexible BudgetFor the Month Ended August 31Actual pounds (q)7,600Revenue ($4.15q)$ 31,540Expenses: Packing supplies ($0.35q)2,660Oyster bed maintenance ($3,100)3,100Wages and salaries ($2,400 + $0.45q)5,820Shipping ($0.60q)4,560Utilities ($1,280)1,280Other ($400 + $0.01q)476Total expense17,896Net operating income$ 13,644

The actual results for August were as follows:

Quilcene OysteriaIncome StatementFor the Month Ended August 31Actual pounds7,600Revenue$ 26,600Expenses: Packing supplies2,830Oyster bed maintenance2,960Wages and salaries6,230Shipping4,290Utilities1,090Other1,096Total expense18,496Net operating income$ 8,104

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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services

Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Strawser

2nd Edition

0073128244, 9780073128245

More Books

Students also viewed these Accounting questions