Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000 pounds of oysters in August. The company’s flexible budget for August appears below: 

The actual results for August appear below:.

Required:

Prepare a report showing the company’s revenue and spending variances for August.

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Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,800 $ 43,080 Revenue Expenses: Cleaning supplies 7,560 Electricity 2,670 Maintenance 2,260 Wages and salaries 8,500 Depreciation 6,000 Rent 8,000 Administrative expenses 4,950 Total expense 39,940 $3,140 Net operating income