Revenue and spending variance : The difference between the actual and budgeted revenue and expenses is stated as revenue and spending variance. It helps the organization to compare the actual results with the budget and analyze those differences. The company can achieve its desired profit with favorable price variance. It has a positive impact on profitability. An unfavorable variance suggests negative profits because, with the increased costs, the profits are reduced. The revenue and spending variances of the company for the month of August.

Question

Want to see the full answer?

Answer 1

Question

Chapter 9, Problem 12E

To determine

Concept Introduction:

Revenue and spending variance: The difference between the actual and budgeted revenue and expenses is stated as revenue and spending variance. It helps the organization to compare the actual results with the budget and analyze those differences. The company can achieve its desired profit with favorable price variance. It has a positive impact on profitability. An unfavorable variance suggests negative profits because, with the increased costs, the profits are reduced.

The revenue and spending variances of the company for the month of August.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,700 pounds of oysters in August. The company's flexible budget for August appears below: For Actual pounds (q) Revenue ($4.05g) Expenses: Packing supplies ($0.30g) Oyster bed maintenance ($3,200) Wages and salaries ($2,100 + $0.40g) Shipping ($0.65g) Utilities ($1,240) Quilcene Oysteria Flexible Budget the Month Ended August 31 Other ($440 + $0.01g). Total expense Net operating income The actual results for August were as follows: Actual pounds Revenue Expenses: Shipping Utilities Other Quilcene Oysteria Income Statement For the Month Ended August 31 Packing supplies Oyster bed maintenance Wages and salaries 7,700 $ 31,185 2,310 3,200 5,180 5,005 1,240 517 17,452 $ 13,733 7,700 $ 26,600 2,480 3,060 5,590 4,735 1,050 1,137

having trouble fing the variances this is what question is and this is my answer ACC 202 Milestone Three: Actual Costs and Revenue Data Appendix At the end of the first month of opening your business, you calculate the actual operating costs of the business and the income you earned. You also notice and document the difference in what you budgeted for certain materials and labor against the actual amounts you spent on the same. For your statement of cost of goods sold, use the following data regarding the actual costs incurred by the business over the past month: Materials purchased: $20,000 Consumed 80% of the purchased materials Direct labor: $8,493 Overhead costs: $3,765 Note: Assume that the beginning materials and ending work in process are zero for the month. Use the following revenue and cost information for the income statement. Note that the revenue you use will depend on the pricing level options you chose in Milestone Two. Also, assume that after accounting for…

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs. Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Actual cars washed Revenue Expenses: Cleaning supplies Electricity Haintenance Hages and salaries Depreciation For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6,70 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Honth Ended August 31 Rent Fixed Cost per Month Administrative expenses Total expense Net operating income $1,300 $4,700 $8,100 $1,900 $1,700 Cost per Car Washed 0,400 $57,710 5,480 2,017 1,070 7,550 8,100 2,100 1,932 20,249 $ 29,4611 $0.60 $0.09 $0.10 $0.30 $0.04 Required: Calculate the company's revenue and spending variances for…