a.

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,600 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)		7,600
Revenue ($4.10q)	$	31,160
Expenses:
Packing supplies ($0.35q)		2,660
Oyster bed maintenance ($3,400)		3,400
Wages and salaries ($2,200 + $0.40q)		5,240
Shipping ($0.75q)		5,700
Utilities ($1,230)		1,230
Other ($490 + $0.01q)		566
Total expense		18,796
Net operating income	$	12,364

The actual results for August appear below:

Quilcene Oysteria Income Statement For the Month Ended August 31
Actual pounds		7,600
Revenue	$	26,700
Expenses:
Packing supplies		2,830
Oyster bed maintenance		3,260
Wages and salaries		5,650
Shipping		5,430
Utilities		1,040
Other		1,186
Total expense		19,396
Net operating income	$	7,304

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.)

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

b.

Via Gelato is a popular neighborhood gelato shop. The company has provided the following data concerning its operations:

	Fixed Element per Month		Variable Element per Liter		Actual Total for June
Revenue			$	21.00	$	133,540
Raw materials			$	5.55	$	37,130
Wages	$	6,500	$	2.30	$	21,300
Utilities	$	2,530	$	1.10	$	10,000
Rent	$	3,500			$	3,500
Insurance	$	2,250			$	2,250
Miscellaneous	$	740	$	1.25	$	8,790

While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example, wages should be $6,500 plus $2.30 per liter of gelato sold and the actual wages for June were $21,300. Via Gelato expected to sell 6,400 liters in June, but actually sold 6,600 liters.

Required:

Complete the report showing Via Gelato revenue and spending variances for June. (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Via Gelato
Revenue and Spending Variances
For the Month Ended June 30
Revenue
Expenses:
Raw materials
Wages
Utilities
Rent
Insurance
Miscellaneous
Total expense
Net operating income