Question

quilcene oysteria
flexible budget
for the month ended august 31
actual pounds (q)
revenue ($4.00q)
expenses:
packing supplies ($0.50q)
oyster bed maintenance ($3,200)
wages and salaries ($2,900 + $0.30q)
shipping ($0.80q)
utilities ($830)
other ($450 + $0.05q)
total expense
net operating income
quilcene oysteria
income statement
for the month ended august 31
actual pounds
revenue
expenses:
packing supplies
oyster bed maintenance
wages and salaries
shipping
utilities
other
total expense
net operating income
quilcene oysteria
revenue and spending variances
for the month ended august 31
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
one\ for no effect (i.e., zero variance). input all amounts as positive values.)

Explanation:

Step1: Calculate Revenue Variance

Revenue variance = Actual revenue - Budgeted revenue
Actual revenue = $35,200$, Budgeted revenue = $32,000$
$35,200 - 32,000=3,200$ (Favorable as actual > budget)

Step2: Calculate Packing Supplies Variance

Budgeted: $4,000$, Actual: $4,200$
$4,200 - 4,000 = 200$ (Unfavorable as actual > budget)

Step3: Calculate Oyster Bed Maintenance Variance

Budgeted: $3,200$, Actual: $3,100$
$3,100 - 3,200=-100$ (Favorable as actual < budget)

Step4: Calculate Wages and Salaries Variance

Budgeted: $5,300$, Actual: $5,640$
$5,640 - 5,300 = 340$ (Unfavorable as actual > budget)

Step5: Calculate Shipping Variance

Budgeted: $6,400$, Actual: $6,950$
$6,950 - 6,400 = 550$ (Unfavorable as actual > budget)

Step6: Calculate Utilities Variance

Budgeted: $810$, Actual: $980$
$980 - 810 = 170$ (Unfavorable as actual > budget)

Step7: Calculate Other Variance

Budgeted: $21,680$, Actual: $13,520$
$13,520 - 21,680=-8,160$ (Favorable as actual < budget)

Step8: Calculate Total Expense Variance

Sum of all expense variances: $200-100 + 340+550+170-8,160=-6,900$

Step9: Calculate Net Operating Income Variance

Revenue variance - Total expense variance
$3,200-(-6,900)=10,100$ (Favorable)

Answer:

Revenue	Packing supplies	Oyster bed maintenance	Wages and salaries	Shipping	Utilities	Other	Total expense	Net operating income