uilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,700 pounds of oysters in gust. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (g) 7,700 Revenue ($4.10g) $ 31,570 Expenses: Packing supplies ($0.40g) 3,080 Oyster bed maintenance ($3,100) 3,100 Wages and salaries ($2,300 + $0.45g) 5,765 Shipping ($0.60g) Utilities ($1,230) 4,620 1,230 Other ($440 + $0.01g) 517 Total expense 18,312 $ 13,258 Het operating income actual results for August were as follows: Quilcene Oysteria Income Statement For the Month Ended August 31 ctual pounds evenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other otal expense et operating income uired: 7,700 $ 26,900 3,250 2,960 6,175 4,350 1,040 1,137 18,912 $ 7,988 culate the company's revenue and spending variances for August. e: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero ance). Input all amounts as positive values.

uilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,700 pounds of oysters in gust. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (g) 7,700 Revenue ($4.10g) $ 31,570 Expenses: Packing supplies ($0.40g) 3,080 Oyster bed maintenance ($3,100) 3,100 Wages and salaries ($2,300 + $0.45g) 5,765 Shipping ($0.60g) Utilities ($1,230) 4,620 1,230 Other ($440 + $0.01g) 517 Total expense 18,312 $ 13,258 Het operating income actual results for August were as follows: Quilcene Oysteria Income Statement For the Month Ended August 31 ctual pounds evenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other otal expense et operating income uired: 7,700 $ 26,900 3,250 2,960 6,175 4,350 1,040 1,137 18,912 $ 7,988 culate the company's revenue and spending variances for August. e: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero ance). Input all amounts as positive values.

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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Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc., budgeted sales of the following. At the end of the year, actual sales revenue for Product R and Product S was 3,075,000 and 3,254,000, respectively. The actual price charged for Product R was 25 and for Product S was 20. Only 10 was charged for Product T to encourage more consumers to buy it, and actual sales revenue equaled 540,000 for this product. Required: 1. Calculate the sales price and sales volume variances for each of the three products based on the original budget. 2. Suppose that Product T is a new product just introduced during the year. What pricing strategy is Eastman, Inc., following for this product?
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Digital Solutions Inc. uses flexible budgets that are based on the following data: Prepare a flexible selling and administrative expenses budget for October for sales volumes of 500,000, 750,000, and 1,000,000.