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:
Calculate the company’s revenue and spending variances for August
Darshita Changed status to publish July 25, 2020
Answer:
| Quilcene Oysteria | ||||
| Revenue and Spending Variances | ||||
| For the Month Ended August 31 | ||||
| Actual Results | Flexible Budget | Revenue and Spending Variances | ||
| Pounds | 8000 | 8000 | ||
| Revenue ($4.00q) | 35200 | 32000 | 3200 | F |
| Expenses: | ||||
| Packing supplies ($0.50q) | 4200 | 4000 | 200 | U |
| Oyster bed maintenance ($3,200) | 3100 | 3200 | 100 | F |
| Wages and salaries ($2,900 + $0.30q) | 5640 | 5300 | 340 | U |
| Shipping ($0.80q) | 6950 | 6400 | 550 | U |
| Utilities ($830) | 810 | 830 | 20 | F |
| Other ($450 + $0.05q) | 980 | 850 | 130 | U |
| Total expense | 21680 | 20580 | 1100 | U |
| Net operating income | 13520 | 11420 | 2100 | F |
Darshita Changed status to publish July 25, 2020
