2.

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,700 pounds of oysters in August. The companys flexible budget for August appears below:

Quilcene Oysteria
Flexible Budget
For the Month Ended August 31
Actual pounds (q)	7,700
Revenue ($4.05q)	$ 31,185
Expenses:
Packing supplies ($0.30q)	2,310
Oyster bed maintenance ($3,100)	3,100
Wages and salaries ($2,200 + $0.40q)	5,280
Shipping ($0.70q)	5,390
Utilities ($1,230)	1,230
Other ($460 + $0.01q)	537
Total expense	17,847
Net operating income	$ 13,338

The actual results for August appear below:

Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds	7,700
Revenue	$ 27,200
Expenses:
Packing supplies	2,480
Oyster bed maintenance	2,960
Wages and salaries	5,690
Shipping	5,120
Utilities	1,040
Other	1,157
Total expense	18,447
Net operating income	$ 8,753

Required:

Calculate the companys 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.)

Quilcene Oysteria Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expense Net operating income