Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,600 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) 7,600 Revenue ($4.15q) $31,540 Expenses: Packing supplies ($0.40q) 3,040 Oyster bed maintenance ($3,400) 3,400 Wages and salaries ($2,000 + $0.25q) 3,900 Shipping ($0.809) 6,080 Utilities ($1,280) 1,280 Other ($440 + $0.01q) 516 Total expense 18,216 $ 13,324 Net operating income The actual results for August appear below: 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 expense Required: 7,600 $ 26,800 3,210 3,260 4,310 5,810 1,090 1,136 18,816 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.) Revenue Expenses: Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,600 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) 7,600 Revenue ($4.15q) $31,540 Expenses: Packing supplies ($0.40q) 3,040 Oyster bed maintenance ($3,400) 3,400 Wages and salaries ($2,000 + $0.25q) 3,900 Shipping ($0.809) 6,080 Utilities ($1,280) 1,280 Other ($440 + $0.01q) 516 Total expense 18,216 $ 13,324 Net operating income The actual results for August appear below: 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 expense Required: 7,600 $ 26,800 3,210 3,260 4,310 5,810 1,090 1,136 18,816 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.) Revenue Expenses: Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income
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Chapter18: Pricing And Profitability Analysis
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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 7,600
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)
7,600
Revenue ($4.15q)
$ 31,540
Expenses:
Packing supplies ($0.40q)
3,040
Oyster bed maintenance ($3,400)
3,400
Wages and salaries ($2,000 + $0.25g)
3,900
Shipping ($0.80q)
6,080
Utilities ($1,280)
1,280
Other ($440 + $0.01q)
516
Total expense
18,216
$ 13,324
Net operating income
The actual results for August appear below:
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 expense
Required:
7,600
$ 26,800
3,210
3,260
4,310
5,810
1,090
1,136
18,816
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.)
Revenue
Expenses:
Quilcene Oysteria
Revenue and Spending Variances
For the Month Ended August 31
Packing supplies
Oyster bed maintenance
Wages and salaries
Shipping
Utilities
Other
Total expense
Net operating income
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