Direct Material Usage Variance

direct-material total variance

It is one of the two components of direct material total variance. The price and quantity variances are generally reported by decreasing income or increasing income , although other outcomes are possible. This illustration presumes that all raw materials purchased are put into production. If this were not the case, then the price variances would be based on the amount purchased while the quantity variances would be based on output.

direct-material total variance

Similarly, unfavorable variance either is not always considered bad. Purchasing department is responsible to place orders for direct materials so this variance is generally considered the responsibility of purchase manager. However, the above reasons clarify that the materials price variance may or may not be the result of inefficiencies of the purchasing department. Review the following graphic and notice that more is spent on actual variable factory overhead than is applied based on standard rates. This scenario produces unfavorable variances (also known as “underapplied overhead” since not all that is spent is applied to production). As monies are spent on overhead (wages, utilization of supplies, etc.), the cost is transferred to the Factory Overhead account. As production occurs, overhead is applied/transferred to Work in Process .

Direct Material Price Variance Formula

Variance analysis helps management to understand the present costs and then to control future costs. Variance calculation should always be calculated by taking the planned or budgeted amount and subtracting the actual/forecasted value.

Compensation may impact the order in which offers appear on page, but our editorial opinions and ratings are not influenced by compensation. Using human in manufacturing rather than automated tools which decrease the efficiency and increases the level of error. The following formula is used to calculate Direct Material Cost Variance.

  • In a multi-product company, the total quantity variance is divided over each of the products manufactured.
  • Variance analysis should also be performed to evaluate spending and utilization for factory overhead.
  • The standard quantity per unit is 28 pounds of paper per case.
  • The standard cost of Product XX includes two units of direct materials at $8.00 per unit.
  • Adding the budget variance and volume variance, we get a total unfavorable variance of $1,600.

Learn the meaning and purpose of the payback period method. Learn how to calculate the payback period, and understand the advantages and limitations of using this method. Standard costs are sometimes referred to as the “should be costs.” DenimWorks should be using 278 yards of denim to make 100 large aprons and 60 small aprons as shown in the following table. Many or all of the products here are from our partners that pay us a commission. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. We do receive compensation from some partners whose offers appear on this page.

How Do You Calculate Population Variance?

The direct material variance is comprised of two other variances, which are noted below. It is customary to calculate and report these direct-material total variance two variances separately, so that management can determine if variances are caused by purchasing issues or manufacturing problems.

An unfavorable variance, on the other hand, indicates that the amount of materials used exceeds the standard requirement. Note that both approaches—the direct materials quantity variance calculation and the alternative calculation—yield the same result. Note that both approaches—the direct materials price variance calculation and the alternative calculation—yield the same result.

Material Cost Variance Formula

This will become clearer with the following illustration. As with material variances, there are several ways to perform the intrinsic labor variance calculations. One can compute the values for the red, blue, and green balls. Or, one can perform the noted algebraic calculations for the rate and efficiency variances. The variance can be both favorable and unfavorable, where the actual can be higher or lower than the expected cost. Favorable when the actual material used is less than standard while unfavorable is the other way around.

  • In addition, the final stages of production require grinding and sanding operations, along with a final coating of paint .
  • Material cost variance is the difference between the standard cost of direct material and the actual cost of direct material used in production.
  • Such variance amounts are generally reported as decreases or increases in income, with the standard cost going to the Work in Process Inventory account.
  • During July, 22,000 units of direct materials are purchased at $7.50 and used to produce 10,000 units.
  • Market conditions such as a supply shortage during the last period have unexpectedly driven up the cost of inputs.

Although the variance is concerned with the physical usage of materials, it is generally stated in dollar terms to help gauge its importance. One must consider the circumstances under which the variances resulted and the materiality of amounts involved. One should also understand that not all unfavorable variances are bad. For example, buying raw materials of superior quality may be offset by reduction in waste and spoilage. Blue Rail’s very favorable labor rate variance resulted from using inexperienced, less expensive labor.

Fixed Overhead Variance

Thus a positive number is favorable and a negative number is unfavorable. To interpret properly the significance of a variance, you must analyze it to determine the underlying factors. Analyzing variances begins by determining the cost elements that comprise the variance. For each manufacturing cost element, a total dollar variance is computed.

direct-material total variance

Excessive usage of materials that is usually a reason of unfavorable direct materials quantity variance may be due to inferior quality of materials, untrained workers, poor supervision etc. Generally speaking production managers are held responsible for this variance. However purchasing department may also be held responsible for purchasing materials of inferior quality to economize on prices. Direct material price variance is calculated to determine the efficiency of purchasing department in obtaining direct material at low cost.

Clarification Of Favorable Versus Unfavorable

When you get a negative difference, you say there’s an unfavorable variance. So, your carrots quantity variance is an unfavorable 15 pounds. Vaguely speaking the such analysis looks to be the responsibility of a purchase manager only, but if we analyze it in details different components affect such variance. The top management, cost accounting, and budgeting team need to work in liaison with the procurement team to make sure the best results are achieved. Let’s assume further that the total direct material cost is only $19,900 instead of $20,900.

The standard quantity is not prepared properly, the manager may wish to increase it in order to protect himself when something go wrong. On the other hand, Adverse Usage variance suggests higher consumption of material compared with standard used during the period in question. Direct materials volume variance is the difference arising from using more than the predetermined amount on a product.

direct-material total variance

We may need to check with the engineering and design team if the process flow works correctly.Low-quality materialLow quality will increase the rate of production failure and wastage. So the purchasing department should follow the quality standards in order to prevent this issue.Unusual wastageThe wastage needs to keep at a reasonable rate. Any factor which increases the wastage, the management needs to find the solution. Companies using a standard cost system ultimately credit favorable variances and debit unfavorable variances to income statement accounts. The appendix to this chapter describes this process in further detail.

Explanation And Analysis Of Direct Material Price Variance

As you calculate variances, you should think through the variance to confirm whether it is favorable or unfavorable. For example, the materials price variance calculation presented previously shows the actual price paid for materials was $1.20 per pound and the standard price was $1. Clearly, this is unfavorable because the actual price was higher than the expected price. How to calculate materials quantity variance Estimate the standard material quantity. Before you start production, estimate the amount of direct material used in one product or manufacturing run. Next, find out how much direct material you used on baking day.

Variances Are Windows To The Inventorys Soul

The standard cost of Product XX includes two units of direct materials at $8.00 per unit. During July, 22,000 units of direct materials are purchased at $7.50 and used to produce 10,000 units. Compute the total, price, and quantity variances for materials. The difference between the actual price and the standard price, multiplied by the actual quantity of materials purchased is the material price variance.

What Is The Difference Between Standard Deviation And Variance?

Performing the analysis of variances of both material price and usage separately can help top management identify the lapses in the calculation of the standards. The Variance analyses are the key starting points for any top management deciding on annual or quarterly budgets. Any firm aiming for total quality management controls and improved efficiencies must carry out the direct material variance analysis, as it improves the set standards. Top management plans for the company in strategic terms, the operational managers then implement those plans. For a manufacturing facility, efficiency in operations, direct material costs, elimination of wastes, and continuous improvements are key points to success. Adverse or unfavorable variance can be caused due to several reasons. The actual cost less the actual quantity at standard price equals the direct materials price variance.

The extra work is only cost-effective when management can actively correct problems based on this information. Adding the budget variance and volume variance, we get a total unfavorable variance of $1,600. Once again, this is something that management may want to look at. For example, if the mix needed to be altered due to an issue with a supplier, the organization may consider switching suppliers. Learn how to compute variable cost per unit, fixed cost, and cost model.

These welders may have used more welding rods and had sloppier welds requiring more grinding. While the overall variance calculations provide signals about these issues, a manager would actually need to drill down into individual cost components to truly find areas for improvement. Standard direct material usage refers to the amount of materials allowed to be used per unit produced. It may also refer to the amount expected under normal circumstances. Reduce Material Usage VarianceWork ineffectiveThe workers need to receive proper training to make sure they can perform the work properly.

How To Integrate With Quickbooks Online

intuit full service payroll for accountants

If you choose to integrate your payroll with “Patriot Accounting” after you have connected your QuickBooks Online account, your QuickBooks Online account will be disconnected. To continue adding more company-paid contributions to specific liability accounts. Which QuickBooks account will your taxes be collected from? Choose the asset account that Patriot will withdraw the money from.

intuit full service payroll for accountants

Sure, it offers all the basics, like workers compensation insurance, health insurance management, and 401 plans. But Gusto includes more varied perks, such as health savings accounts and life insurance options. And competitors like ADP, Paychex, and UZIO have better payroll-plus-HR packages with more comprehensive HR solutions than QuickBooks. ADP is one of the most popular and well-known services for workforce management, including payroll services online. The user is responsible for paper filing or e-filing the tax forms, which are all automatically prepared by the system (including e-file). Client generates the paychecks by using the hours or gross pay, the system calculates the withholdings and can either print or direct deposit the paychecks, client can e-pay taxes via the system.

When To Use An Alternative To Intuit Payroll Online

Zoho Books is ideal for all teams who need to manage finances wherever they are as it comes with dedicated apps for Windows, Mac, iOS, and Android devices. Record all your purchases and expenses, never miss a payment, and stay in control of your cash. Xero allows you to create and keep detailed possession records to use automatically in your transactions. All of these records are robust and contain details such as tax status, purchase costs, committed quotes, and relevant descriptions.

We were also disappointed that only the most expensive QuickBooks plans offer a tax guarantee. Most of the services we examined offered this guarantee to all customers. Each time we reached out by phone, a representative immediately answered our call. With some of the intuit full service payroll for accountants other large payroll services we considered, we had to wait on hold for lengthy periods before someone was available to speak with us. The last step is to click the Submit to Intuit link. The service confirms that it received the information and processes payroll.

Gusto is the payroll software we recommend to small businesses. You can calculate paychecks, submit direct deposit payments, and print checks. The software will keep track of payroll taxes due and you can easily submit payment electronically within the program.

It also features a native mobile application, Paycor Mobile, where you can perform everything you need to do on mobile as you would on your office desktop. Employees can access their own pay stubs, and W-2s by creating an account on the Workforce portal , which has been redesigned and enhanced recently. They can now enter and edit more of their personal profile and security information, and access YTD pay and available sick pay and PTO.

Intuit Online Payroll Pricing

With Full Service, direct deposits can be sent same-day instead of in 24 hours. Intuit also sets up and configures your QBO payroll settings for you. Part of QuickBooks Payroll’s appeal is that the company offers several plan types at a range of prices. Several plans combine the company’s accounting software and payroll service.

We do receive compensation from some partners whose offers appear on this page. We have not reviewed all available products or offers. Compensation may impact the order in which offers appear on page, but our editorial opinions and ratings are not influenced by compensation. What are the different ways that your employees get paid?

It will also feature a centralized dashboard through which users can create financial workflows to suit their needs, as well as move invoices seamlessly across QuickBooks and HubSpot. QuickBooks accounting software can be added to any of the plans listed above. It starts at $15 per month and includes four pricing plans that range up to $150 per month. Clients cannot process any tax-related tasks or change the setup of the account and clients can run payroll and view reports. OnPay combines 30+ years of payroll experience with the latest technology to be the payroll partner accountants can always rely on. We know how to get payroll and tax filings right for any client ⁠— even those with distinct needs like restaurants, farms, and churches. Intuit will take care of your payroll tax payments and filings for you – accurate and on-time.

Intuit Online Payroll For Accountants Log In

Once the transition is finished, we’ll provide instructions to log into QuickBooks Online Accountant. If you previously had a QuickBooks Online Accountant account, you’ll see two companies. Some Accountants may wish to keep their clients who were previously on Intuit Payroll separate from their other clients for ease of management. We are working toward a solution for those who would like to consolidate clients into a single account and will notify you when this is made available. To allow you to have increased flexibility and control, we plan to start inviting accountants to voluntarily transition their clients to QuickBooks Online Payroll. This voluntary transition period will begin in November 2021 at the earliest and continue through May of 2022. If you have not transitioned to QuickBooks Online Payroll by June 2022, we will make the transition for you and your clients, with no disruption to your or your clients’ business.

  • Easy-to-use yet total payroll solution OnPay offers small and medium-size businesses highly-scalable applications.
  • The Intuit Full Service Payroll option requires less time and effort on your part compared to the self-service option.
  • With QuickBooks Payroll Premium, you’ll transfer your own data but we’ll review to make sure everything is correct.
  • Copy all paycheck data to one customizable screen, and save time with auto-calculated taxes.
  • There are many options, and, sometimes, understanding the difference is difficult.
  • Stay updated on the latest products and services anytime anywhere.

EPAY Systems can keep you updated with the relevant codes and even automatically compute for them. Speaking of analytics, Paycor deep-dives into people insights and analytics. It uses predictive algorithms centered around your specified HR metrics, such as labor costs and diversity, so you can make data-driven decisions. All this backed by Paycor’s reputation as a key partner of more than 30,000 small businesses since 2005. Get security and peace of mind with automated data back-ups stored offsite, in the cloud. You can also undo data entry errors by restoring data from the cloud as of a particular date. Automatically sync Microsoft Outlook contacts and Sage 50cloud contacts to save you time.

What To Look For In Payroll Software For Accountants

It’s easier to use, requires less work on the part of the business owner, and Intuit’s accountants guarantee no penalties since they will make sure your payroll taxes are handled properly. Interested business owners can get started with QuickBooks Online Full Service Payroll and save 50% for three months. QuickBooks Online Self Service Payroll customers contact customer service for support only if they have a QuickBooks Online Plus subscription or pay for on-demand support. By contrast, Intuit Full Service Payroll customers can contact customer support by phone or chat. Both QuickBooks Online payroll options feature in-app help content and an online knowledge base.

intuit full service payroll for accountants

Paycor has a simple interface, from where you can access integrated apps, customizable templates, recruitment and onboarding, and real-time analytics. With Eddy, your team can be appraised of every situation as far as HR is concerned. The communication module that comes with Eddy supports chats, comments, and reactions, bringing the power of social media into your office. Xero is one of the market leaders when it comes to financial collaboration apps. This system is designed to meet the requirements of small businesses regardless of the type of business or industry. The vendor offers a great free trial that lets you try out all the key features first.

Plus, it offers free perks that are otherwise paid in other systems, such as direct deposits and a free employee portal. The connectivity and integration capabilities of Zoho apps mean you can get one Zoho solution and beef it up with another one. Gusto eliminates critical human errors since you won’t have to enter data in several different apps and websites, and just let the system calculate deductions. In this article, we compiled the 20 best payroll platforms on the market. The key features of each and the specific benefits they afford are covered so you can make an informed decision on which software to purchase.

It likewise has expense management features that include mobile payment and bank feeds. The product is capable of connecting to your bank accounts, allowing for real-time recording of sales and receipts, track receivables, transfer funds, reconcile bank accounts, and make deposits.

Quickbooks Online Self Service Vs Full Service Payroll: Customer Service

We’ll transfer your data for you with QuickBooks Payroll Elite. With QuickBooks Payroll Premium, you’ll transfer your own data but we’ll review to make sure everything is correct.

intuit full service payroll for accountants

There’s annual salary, of course, and hourly wages. But what about bonuses or other one-time payments? When I teach a QuickBooks Training class on this element, I ask people to brainstorm every possible way that an employee might receive compensation from you. We then work out all of the scenarios to prepare the attendees for that “real world” that always seems so much different than in the classroom. Even though the QuickBooks Payroll setup process is self-explanatory, some QuickBooks Training can help… or you should at least read some of these guides.

It is a cloud-based service that has no software to install or maintain and can be accessed online from anywhere. Below, you’ll find a full breakdown of the pricing and features for all of QuickBooks Payroll’s plans. Keep in mind that first-time customers are eligible for a 30-day trial on all of these plans, so you can give the software a test-drive before you commit to a monthly or yearly plan. This review is for small business owners who are considering using QuickBooks Payroll as their payroll service. Intuit Online Payroll is a great platform for accountants and firms. Intuit Online payroll is different from QuickBooks’ Online Payroll. I hope you must have learned about intuit Online Payroll through this article.

Just enter your employees’ hours, and QuickBooks Desktop Payroll will calculate paychecks, subtracting payroll taxes and deductions. Then print paychecks instantly, or use our convenient Direct Deposit. You can also pay groups of employees on different days.

Beginning in August 2021, accountants and their clients will be moving from these products to QuickBooks Online Payroll Core, Premium or Elite. Chad Brooks is a writer and editor with more than 20 years of media of experience.

The point of using payroll software is that it should help you pay your employees quickly and easily, saving you time—and hopefully money—in the long run. But is QuickBooks Online Payroll the right software for your business? This QuickBooks Payroll review will break down the features, pricing, advantages, and disadvantages of using this payroll service. We’ll also discuss top alternatives to QuickBooks Payroll, so you can make an informed decision about what’s best for your needs. Intuit’s Payroll software let’s pay your employees quickly and easily. It calculates payroll taxes automatically and can create unlimited paychecks instantly.

More Reasons To Love Assisted Payroll For Quickbooks Desktop

Small businesses Automate tasks and organize finances. Advanced accounting Scale smarter with profitability insights. Pricing & Promotions Essential products & supplies with discounts just for pros.

It includes everything mentioned so far, plus 24/7 expert product support and a customized setup. It also offers a personal HR advisor, remote project tracking, and Tax Penalty Protection. Intuit Online Payroll provides excellent incentives for accountants to manage multiple clients, including reduced costs, and tax tables are available for all 50 states. According to my sources, we know there are various versions of payroll. A subscription such as QuickBooks Online Payroll standalone can be located outside of the QuickBooks Online accounting subscription. So yes, both options are possible for accountants in combination with clients to determine what is best for payroll to be located inside or outside of the QuickBooks accounting subscription.

It’s no longer an emergency when you need to come up with a special paycheck. Paycor is an integrated Human Capital Management platform. It offers comprehensive extensive recruitment, onboarding, HR, and payroll capabilities. These features are easy-to-use and can be incorporated into existing HR data and solutions, designed with personalization and user-friendliness in mind.

Las Fincas Swansboro Nc 28584

las fincas swansboro nc menu

After two years of preaching that we do not have snow down here on the coast, we got some snow. We drove over to Emerald Isle to see how the snow was doing on the beach. The temperature did drop last night to around twenty degrees Fahrenheit. However, the bright sunshine is making short work of any snow that it can reach. The snow storm which gave us about one half an inch of snow is long gone. The last snow flurries were around 10 PM last night. There is a small parking lot and a nice pier out into Bogue Sound.

las fincas swansboro nc menu

This is the first DECENT Mexican restaurant I have been to here in North Carolina. I still wish they used jack cheese instead of American. For the most part, it was awesome and the beans weren’t watery like a bunch if places in NC. Claim your listing for free to respond to reviews, update your profile and much more. To seat people, answer the phone, take orders, and check people out.

One of my absolute favorite things about the Crystal Coast has to be our locally owned and operated restaurants. The big news here on the coast is the potential for the first real snow since 2003. Even fried shrimp are okay as long as they are not heavily battered. They are closed Sunday, but recently they have opened for lunch.

Connecting Twitter to our real estate listings seems to be a good idea. Also using YouTube to post virtual tours of area homes is working. The big change when I went out to check the gauge was the temperature.


YP – The Real Yellow PagesSM – helps you find the right local businesses to meet your specific needs. Search results are sorted by a combination of factors to give you a set of choices in response to your search criteria. “Preferred” listings, or those with featured website buttons, indicate YP advertisers who directly provide information about their businesses to help consumers make more informed buying decisions. YP advertisers receive higher placement in the default ordering of search results and may appear in sponsored listings on the top, side, or bottom of the search results page.

Last I heard Riso’s was still taking reservations for Valentine’s Day. On my last trip there I had the special which was Pete’s special with less meat and more pasta backed in the same dish. It is a little lighter than Pete’s special, but it does still come with the choice of a garden salad or a Caesar Salad. Unfortunately I did not las fincas swansboro nc menu see any meat for the grill that caught my attention on our second visit. We did pick up a very tasty rotisserie chicken today for only $4.99. That is not bad since we get two meals out of a chicken. While a good sub would be nice, I have had it on my mind that this about the time of year that the Crab Shack in Salter Path opens.

las fincas swansboro nc menu

The best restaurants survive by creative cooking and delivering meals that are a great value. On Wednesday night we decided to try the Fairway’s all you can eat shrimp and fish special for $9.99. After cooking your grits about twelve minutes take a pound or so of cleaned, deveined NC shrimpand saute them in olive oil with some chopped onions for about three minutes. I have even had to give up my dinner on occasion when a particular recipe was too spicy for my wife. I love shrimp, and I have yet to see a dish that destroyed really good shrimp like we have here on the Crystal Coast. The completely redone interior makes it one of the nicest restaurants in the area.

Ephemeral Snow

There are also great live oaks scattered around their subdivision. They have a nice dock with boat slips, and a serviceable boat ramp. As we were out and about today, I saw the temperature hit 56F. This evening just before midnight the temperature remains at 45F. It would have been a good night for peaceful meal if you could have found a restaurant open. Today, January 20, inauguration day, we got snow. All day I did not think it was going to happen.

Fresh tortillas made in house…chiles rellenos, fajitas all excellent. This restaurant has been reported as permanently closed.

More Types Of Restaurants In Swansboro

A special feature is that you can even select the award category of the different hotel chains by clicking and selecting them in the top left corner. The old blog used to create maps in Google Maps with up-to-date locations of hotels belonging to all major hotel chains until 2019. There is always something unique on their menu, and recently they raised their game with the introduction of family style dining. We have been a couple of times and been impressed. The charge for the country style meal is $9.99. All the restaurants along the coast have to work hard during the winter months when our population has shrunk.

las fincas swansboro nc menu

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Warm Start To A Wet Day

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GREAT food, including fresh house-made flour tortillas, served hot enough to burn your fingers. The dining room is comfortable and festive, the service is friendly and efficient. Hand-made fresh tortillas…no other place around here is doing that. I really like the new menu that has build-your-own combo plates.

All this comes after the winter effort to create accessible ramps to the beaches both at Western and Eastern Regional Accesses. I was actually sort of excited to eat some of the shrimp that I like to imagine the estuary around my home has helped to raise.

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  • Recently we had the pleasure of eating there twice in a few days.
  • We drove over to Emerald Isle to see how the snow was doing on the beach.
  • My wife had decided we were having shrimp and grits for dinner.
  • Last I heard Riso’s was still taking reservations for Valentine’s Day.

Recently we had the pleasure of eating there twice in a few days. With the thunder came even more wind and finally rain which was heavy for a while. We got an inch in the night which made our total for the day 1.5 inches. The story is huge for our area, but certainly uncrowded at this point. We all know that we are grocery nirvana right now. Summer will soon be here, and we will be reduced to Monday through Thursday shopping except for small trips. I will not complain about the tourists coming since we all need them to keep our economy going.

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The last three visits have been horrendous from a service standpoint. Literally one waitress and the owner trying… It appeared that this location was suffering from a case of low staffing this particular evening. It was a Saturday night after 7pm and it appeared that there were not enough staff to accommodate the amount of customers. I have no financial or familial interest in the business. 4 reviews with an average rating of 3.0 stars have been consolidated here.

Let your mouth have a fiesta of its own at Las Fincas, a casual Mexican restaurant in Swansboro. Time to fill this bad boy with great products like gadgets, electronics, housewares, gifts and other great offerings from Groupon Goods. And then disappeared and we had the manager taking care of us and his other tables haha. We normally go to the Mexican restaurant in Emerald Isle, but decide to give this one a try. We will continue to go to Plaza Mexican Restaurant in Emerald Isle in the future. Hopefully management gets more waitresses like the one we had and tightens up on the kitchen. The best thing about this restaurant to me is that everything doesn’t taste the same.

Ratings And Reviews

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The menu has a ton of options and it isn’t expensive at all. If you’re looking for a good Mexican place to eat or you’re a vegetarian that doesn’t want even crappier food from McDonald’s I would recommend this place.

Slow to get food to the table, forgetful about requests, slow to get the check to us when requested. It wasn’t an awful visit and I’m not trying to speak badly of these folks but I’m sure they could do better with more staff during these dinner hours. Food was as I remember it to be and the facility was generally clean. Im sure a different time of the day would resulted in better more attentive service. I would still give them an A for the valiant attempt to please everyone at the same time. My wife had decided we were having shrimp and grits for dinner. SuperPagesSM – helps you find the right local businesses to meet your specific needs.

We might just make our way down there and see if we can find some whole fried clams. I think everyone is quietly anticipating the return of the tourists. The fishing remains slow with winds and weather not cooperating very much.