FIN6010 - Week 2 - Chapter 8 Assignment Managerial Accounting.docx

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FIN6010:Advanced Finance and Managerial AccountingChapter 8: Assignment Managerial AccountingGuokui LiNovember 02, 2019EXERCISES:
EXERCISE 8-1 Prepare a Flexible Budget [LO8-1]Puget Sound Divers is a company that provides diving services such as underwatership repairs to clients in the Puget Sound area. The company’s planning budget forMay appears below:Puget Sound DiversPlanning BudgetFor the Month Ended May 31Budgeted diving-hours (q)100Revenue ($365.00q)$36,500Expenses:Wages and salaries ($8,000 + $125.00q)20,500Supplies ($3.00q)300Equipment rental ($1,800 + $32.00q)5,000Insurance ($3,400)3,400Miscellaneous ($630 + $1.80q)810Total expense30,010Net operating income$6,490Required:During May, the company’s activity was actually 105 diving-hours. Prepare a flexiblebudget for that level of activity.
Insurance ($3,400)3,400Miscellaneous ($630 + $1.80q)819Total expense30,819Net operating income$7,506EXERCISE 8-2 Prepare a Report Showing Revenue and Spending Variances[LO8-2]Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The companyharvested and sold 8,000 pounds of oysters in August. The company’s flexible budgetfor August appears below:Quilcene OysteriaFlexible BudgetFor the Month Ended August 31Actual pounds (q)8,000Revenue ($4.00q)$32,000Expenses:Packing supplies ($0.50q)4,000Oyster bed maintenance ($3,200)3,200Wages and salaries ($2,900 + $0.30q)5,300Shipping ($0.80q)6,400Utilities ($830)830Other ($450 + $0.05q)850Total expense20,580Net operating income$11,420The actual results for August appear below:Quilcene OysteriaIncome StatementFor the Month Ended August 31Actual pounds8,000Revenue$35,200Expenses:Packing supplies4,200Oyster bed maintenance3,100Wages and salaries5,640
Shipping6,950Utilities810Other980Total expense21,680Net operating income$13,520Required:Prepare a report showing the company’s revenue and spending variances for August.

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Term
Spring
Professor
N/A
Tags
Variance, Direct material price variance, Flandro Company

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