Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,000 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) Revenue ($4.10q) Expenses: Packing supplies ($0.35q) Oyster bed maintenance ($3, 100) Wages and salaries ($2,500 + $0.45q) Shipping ($0.75q) Utilities ($1,210) Other ($480 + $0.01g) Total expense 7,000 $ 28,700 2,450 3,100 5,650 5,250 1,210 550 18,210 $ 10,490 Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,000 $ 27,400 Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities 2,620 2,960 6,060 4,980 1,020 1,170 18,810 $ 8,590 Other Total expense Net operating income
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,000 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) Revenue ($4.10q) Expenses: Packing supplies ($0.35q) Oyster bed maintenance ($3, 100) Wages and salaries ($2,500 + $0.45q) Shipping ($0.75q) Utilities ($1,210) Other ($480 + $0.01g) Total expense 7,000 $ 28,700 2,450 3,100 5,650 5,250 1,210 550 18,210 $ 10,490 Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,000 $ 27,400 Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities 2,620 2,960 6,060 4,980 1,020 1,170 18,810 $ 8,590 Other Total expense Net operating income
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 11CE: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted...
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text: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.)
ok
nt
Quilcene Oysteria
Revenue and Spending Variances
int
For the Month Ended August 31
Revenue
Expenses:
"ences
Packing supplies
Oyster bed maintenance
Wages and salarios
Shipping
Utilitios
Other
Total expense
Net operating income
Transcribed Image Text:Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,000
pounds of oysters in August. The company's flexible budget for August appears below:
Quilcene Oysteria
Flexible Budget
For the Month Ended August 31
7,000
$ 28,700
Actual pounds (q)
Revenue ($4.10q)
Expenses:
Packing supplies ($0.35q)
Oyster bed maintenance ($3, 100)
Wages and salaries ($2,500 + $0.45g)
Shipping ($0.75q)
Utilities ($1,210)
Other ($480 + $0.01g)
Total expense
2,450
3,100
5,650
5,250
1,210
550
18,210
$ 10,490
Net operating income
The actual results for August appear below:
Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds
7,000
Revenue
$ 27,400
Expenses:
Packing supplies
Oyster bed maintenance
Wages and salaries
Shipping
Utilities
2,620
2,960
6,060
4,980
1,020
1,170
18,810
Other
Total expense
$ 8,590
Net operating income
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.)
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