Question

Exercise 9-3 (Algo) Revenue and Spending Variances [LO9-3] Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,800 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) 7,800 Revenue ($4.15q) Expenses: Packing supplies (se.30q) Oyster bed maintenance ($3,500) Wages and salaries ($2,300 $e.30q) Shipping ($e.68) Utilities ($1,260) Other ($400 +$e.01q) Total expense $32,370 2,340 3,50e 4,640 4,680 1,260 478 16,898 $15,472 Net operating income

Answer 1

Solution

Quilcene Oysteria
Revenues and Spending Variance
For the Month ended August 31
Revenue	$ 5,870.00	U
Expenses:
Packing supplies	$ 170.00	U
Oyster Bed Maintenance	$ 140.00	F
Wages and Salaries	$ 410.00	U
Shipping	$ 270.00	F
Utilities	$ 190.00	F
Other	$ 620.00	U
Total Expenses	$ 600.00	U
Net Operating Income	$ 6,470.00	U