Exercise 9-3 (Algo) Revenue and Spending Variances [LO9-3]

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,100 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)	7,100
Revenue ($4.20q)	$ 29,820
Expenses:
Packing supplies ($0.30q)	2,130
Oyster bed maintenance ($3,400)	3,400
Wages and salaries ($2,100 + $0.30q)	4,230
Shipping ($0.60q)	4,260
Utilities ($1,290)	1,290
Other ($400 + $0.01q)	471
Total expense	15,781
Net operating income	$ 14,039

The actual results for August were as follows:

Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds	7,100
Revenue	$ 27,400
Expenses:
Packing supplies	2,300
Oyster bed maintenance	3,260
Wages and salaries	4,640
Shipping	3,990
Utilities	1,100
Other	1,091
Total expense	16,381
Net operating income	$ 11,019

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.)