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

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,400 pounds of oysters in August. The company's flexible budget for August appears below:

Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (q)7,400Revenue ($4.15q)$30,710 Expenses:Packing supplies ($0.40q)2,960 Oyster bed maintenance ($3,200)3,200 Wages and salaries ($2,200 + $0.30q)4,420 Shipping ($0.70q)5,180 Utilities ($1,300)1,300 Other ($470 + $0.01q)544 Total expense17,604 Net operating income$13,106

The actual results for August appear below:

Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds7,400Revenue$27,200 Expenses:Packing supplies3,130 Oyster bed maintenance3,060 Wages and salaries4,830 Shipping4,910 Utilities1,110 Other1,164 Total expense18,204 Net operating income$8,996

Required:

Calculate the company's 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.)