2.

value: 3.33 points

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,900 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)		7,900
Revenue ($4.10q)	$	32,390
Expenses:
Packing supplies ($0.35q)		2,765
Oyster bed maintenance ($3,100)		3,100
Wages and salaries ($2,200 + $0.45q)		5,755
Shipping ($0.60q)		4,740
Utilities ($1,260)		1,260
Other ($470 + $0.01q)		549
Total expense		18,169
Net operating income	$	14,221

The actual results for August appear below:

Quilcene Oysteria Income Statement For the Month Ended August 31
Actual pounds		7,900
Revenue	$	27,000
Expenses:
Packing supplies		2,935
Oyster bed maintenance		2,960
Wages and salaries		6,165
Shipping		4,470
Utilities		1,070
Other		1,169
Total expense		18,769
Net operating income	$	8,231

Required:

Compute 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.)