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 7,800 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)		7,800
Revenue ($4.10q)	$	31,980
Expenses:
Packing supplies ($0.25q)		1,950
Oyster bed maintenance ($3,200)		3,200
Wages and salaries ($2,500 + $0.45q)		6,010
Shipping ($0.80q)		6,240
Utilities ($1,240)		1,240
Other ($500 + $0.01q)		578
Total expense		19,218
Net operating income	$	12,762

The actual results for August appear below:

Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds		7,800
Revenue	$	27,400
Expenses:
Packing supplies		2,120
Oyster bed maintenance		3,060
Wages and salaries		6,420
Shipping		5,970
Utilities		1,050
Other		1,198
Total expense		19,818
Net operating income	$	7,582

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.)

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