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Exercise 8-2 Prepare a Report Showing Revenue and Spending Variances [LO8-2] Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and

Exercise 8-2 Prepare a Report Showing Revenue and Spending Variances [LO8-2]

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 ($0.40q) 3,160
Oyster bed maintenance ($3,400) 3,400
Wages and salaries ($2,300 + $0.35q) 5,065
Shipping ($0.60q) 4,740
Utilities ($1,280) 1,280
Other ($460 + $0.01q) 539


Total expense 18,184


Net operating income $ 14,206





The actual results for August appear below:

Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds 7,900
Revenue $ 26,700


Expenses:
Packing supplies 3,330
Oyster bed maintenance 3,260
Wages and salaries 5,475
Shipping 4,470
Utilities 1,090
Other 1,159


Total expense 18,784


Net operating income $ 7,916





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

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