Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,900 pounds of oysters in August. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 ed Actual pounds (q) Revenue ($4.10g) 7,900 $32,390 Expenses: k Packing supplies ($0.30g) 2,370 Oyster bed maintenance ($3,100) 3,100 Wages and salaries ($2,100+ $0.40q) 5,260 Shipping ($0.75q) 5,925 Utilities ($1,200) 1,200 Other ($510 + $0.019) Total expenses Net operating income CE 589 18,444 $13,946 The actual results for August were as follows: Quilcene Oysteria Income Statement For the Month Ended August Actual pounds Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expenses Net operating income Required: 31 7,900 $ 26,500 2,540 2,960 5,670 5,655 1,010 1,209 19,044 $ 7,456 Calculate the company's revenue and spending variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values. Revenue Quilcene Oysteria Revenue and Spending Variances. For the Month Ended August 31 Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expenses Net operating income
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,900 pounds of oysters in August. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 ed Actual pounds (q) Revenue ($4.10g) 7,900 $32,390 Expenses: k Packing supplies ($0.30g) 2,370 Oyster bed maintenance ($3,100) 3,100 Wages and salaries ($2,100+ $0.40q) 5,260 Shipping ($0.75q) 5,925 Utilities ($1,200) 1,200 Other ($510 + $0.019) Total expenses Net operating income CE 589 18,444 $13,946 The actual results for August were as follows: Quilcene Oysteria Income Statement For the Month Ended August Actual pounds Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expenses Net operating income Required: 31 7,900 $ 26,500 2,540 2,960 5,670 5,655 1,010 1,209 19,044 $ 7,456 Calculate the company's revenue and spending variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values. Revenue Quilcene Oysteria Revenue and Spending Variances. For the Month Ended August 31 Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expenses Net operating income
Chapter7: Budgeting
Section: Chapter Questions
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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:Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,900 pounds of
oysters in August. The company's flexible budget for August appears below:
Quilcene Oysteria
Flexible Budget
For the Month Ended August 31
ed
Actual pounds (q)
7,900
Revenue ($4.10q)
$ 32,390
Expenses:
k
Packing supplies ($0.30g)
2,370
Oyster bed maintenance ($3,100)
3,100
Wages and salaries ($2,100 +
$0.40q)
5,260
Shipping ($0.75q)
5,925
Utilities ($1,200)
1,200
t
Other ($510 + $0.019)
589
Total expenses
18,444
Net operating income
$ 13,946
CE
The actual results for August were as follows:
Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds
Revenue
Expenses:
Packing supplies
Oyster bed maintenance
Wages and salaries
Shipping
Utilities
Other
Total expenses
Net operating income
Required:
7,900
$ 26,500
2,540
2,960
5,670
5,655
1,010
1,209
19,044
$ 7,456
Calculate the company's revenue and spending variances for August.
Note: 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.
Quilcene Oysteria
Revenue and Spending Variances
For the Month Ended August 31
Revenue
Expenses:
Packing supplies
Oyster bed maintenance
Wages and salaries
Shipping
Utilities
Other
Total expenses
Net operating income
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