Answered step by step
Verified Expert Solution
Question
1 Approved Answer
uilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,300 pounds of oysters in August. The company's flexible budget
uilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,300 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) 7,300 Revenue ($4.25q) $ 31,025 Expenses: Packing supplies ($0.309) 2,190 Oyster bed maintenance ($3,300) 3,300 Wages and salaries ($2,400 + $0.509) 6,050 Shipping ($0.75q) 5,475 Utilities ($1,220) 1,220 Other ($420 + $0.019) 493 Total expense 18,728 $ 12,297 Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds Revenue Expenses: 7,300 $ 26,700 Packing supplies Wages and salaries Shipping Utilities Other 2,360 Oyster bed maintenance 3,160 6,460 5,205 1,030 1,113 Total expense 19,328 Net operating income $ 7,372 Required: Calculate the company's 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.) Answer is not complete. Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses: U Packing supplies U Oyster bed maintenance F Wages and salaries U Shipping Utilities Other Total expense Net operating income LL F LL F U U U
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started