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Quilcene Oysteria farms and sells oysters in the Pacific Northwest

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1. Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,100 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) 7,100
   Revenue ($4.20q) $ 29,820
   Expenses:
   Packing supplies ($0.30q) 2,130
   Oyster bed maintenance ($3,400) 3,400
   Wages and salaries ($2,500 + $0.35q) 4,985
   Shipping ($0.70q) 4,970
   Utilities ($1,250) 1,250
   Other ($480 + $0.01q) 551
   Total expense 17,286
   Net operating income $ 12,534
   
   The actual results for August appear below:
   
   Quilcene Oysteria
   Income Statement
   For the Month Ended August 31
   Actual pounds 7,100
   Revenue $ 27,300
   Expenses:
   Packing supplies 2,300
   Oyster bed maintenance 3,260
   Wages and salaries 5,395
   Shipping 4,700
   Utilities 1,060
   Other 1,171
   Total expense 17,886
   Net operating income $ 9,414
   
   Required:
   Compute the company's revenue and spending variances for August.
2. Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company's operations in July appear below:
   
   Vulcan Flyovers
   Operating Data
   For the Month Ended July 31
   Actual
   Results Flexible
   Budget Planning
   Budget
   Flights (q) 52 52 50
   Revenue ($355.00q) $ 16,000 $ 18,460 $ 17,750
   Expenses:
   Wages and salaries ($3,700 + $87.00q) 8,190 8,224 8,050
   Fuel ($31.00q) 1,780 1,612 1,550
   Airport fees ($860 + $33.00q) 2,446 2,576 2,510
   Aircraft depreciation ($9.00q) 468 468 450
   Office expenses ($210 + $1.00q) 430 262 260
   Total expense 13,314 13,142 12,820
   Net operating income $ 2,686 $ 5,318 $ 4,930
   
   The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount.
   
   
   Required:
   1. Complete the flexible budget performance report abstract for July.
3. Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost drivers—the number of cruises and the number of passengers—that it uses in its budgeting and performance reports. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 82 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below:
   
   
   Fixed Cost
   per Month Cost per
   Cruise Cost per
   Passenger
   Vessel operating costs $ 6,000 $ 473.00 $ 3.30
   Advertising $ 2,700
   Administrative costs $ 5,900 $ 32.00 $ 1.50
   Insurance $ 3,700
   
   
   For example, vessel operating costs should be $6,000 per month plus $473.00 per cruise plus $3.30 per passenger. The company's sales should average $32.00 per passenger. The company's planning budget for July is based on 50 cruises and 3,100 passengers.
   
   
   Required:
   Complete the company's planning budget for July.
4. Waste on the production line will result in an unfavorable materials quantity variance.
5. Variable manufacturing overhead is applied to products on the basis of standard direct labor-hours. If the labor efficiency variance is unfavorable, the variable overhead efficiency variance will be:
6. The standard price per unit for direct materials should not include the cost of delivering the materials.
7. A materials price variance is unfavorable if the actual price exceeds the standard price.
8. The materials price variance is computed by multiplying the difference between the actual price and the standard price by the actual quantity of materials purchased.
9. Asia Sporting Industries, located in Hong Kong, manufactures sporting equipment. A major seller for the company, a football helmet for the Texas market, requires a very hard special plastic. During the quarter ending March 31, the company manufactured 3,300 helmets, using 2,310 kilograms of plastic. The plastic cost the company $17,556.
   
   Based on the company's standard cost card for the helmet, each helmet should require 0.6 kilograms of plastic, at a cost of $8 per kilogram.
   
   Required:
   1. According to the standards, what would be the total standard cost of plastic that should have been incurred to make 3,300 helmets? How much greater or less is this than the cost that was incurred?
10. Asia Sporting Industries, located in Hong Kong, manufactures sporting equipment. A major seller for the company, a football helmet for the Texas market, requires a very hard special plastic. During the quarter ending March 31, the company manufactured 3,300 helmets, using 2,310 kilograms of plastic. The plastic cost the company $17,556.
    
    Based on the company's standard cost card for the helmet, each helmet should require 0.6 kilograms of plastic, at a cost of $8 per kilogram.
    
    2. Break down the difference computed in (1) above into a materials price variance and a materials quantity variance. (Round your actual materials price to two decimal places, and round your final answers to the nearest whole dollar. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)