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: For Actual pounds (q) Revenue ($4.00q) Expenses: Packing supplies ($0.50q) Oyster bed maintenance ($3,200) Wages and salaries ($2,900 + $0.30g) Shipping ($0.80q) Utilities ($830) Other ($450+ $0.05q) Total expense Net operating income The actual results for August were as follows: Quilcene Oysterial Income Statement For the Month Ended August 31 Actual pounds Revenue Quilcene Oysteria Flexible Budget the Month Ended August 31 Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense 8,000 $ 32,000 4,000 3,200 5,300 6,400 830 850 20,580 $ 11,420 8,000 $ 35,200 4,200 3,100 5,640 6,950 810 980 21,680 12 528

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: For Actual pounds (q) Revenue ($4.00q) Expenses: Packing supplies ($0.50q) Oyster bed maintenance ($3,200) Wages and salaries ($2,900 + $0.30g) Shipping ($0.80q) Utilities ($830) Other ($450+ $0.05q) Total expense Net operating income The actual results for August were as follows: Quilcene Oysterial Income Statement For the Month Ended August 31 Actual pounds Revenue Quilcene Oysteria Flexible Budget the Month Ended August 31 Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense 8,000 $ 32,000 4,000 3,200 5,300 6,400 830 850 20,580 $ 11,420 8,000 $ 35,200 4,200 3,100 5,640 6,950 810 980 21,680 12 528

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter23: Flexible Budgeting (flexbud)

Section: Chapter Questions

Problem 1R

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