Exercise 9-2 Prepare a Report Showing Revenue and Spending Variances [LO9-2]

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,300 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)		7,300
Revenue ($4.15q)	$	30,295
Expenses:
Packing supplies ($0.35q)		2,555
Oyster bed maintenance ($3,100)		3,100
Wages and salaries ($2,600 + $0.30q)		4,790
Shipping ($0.60q)		4,380
Utilities ($1,240)		1,240
Other ($470 + $0.01q)		543
Total expense		16,608
Net operating income	$	13,687

The actual results for August appear below:

Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds		7,300
Revenue	$	27,100
Expenses:
Packing supplies		2,725
Oyster bed maintenance		2,960
Wages and salaries		5,200
Shipping		4,110
Utilities		1,050
Other		1,163
Total expense		17,208
Net operating income	$	9,892

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.)