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 7,000 pounds of oysters in August. The companys flexible budget for August appears below:

Quilcene OysteriaFlexible BudgetFor the Month Ended August 31Actual pounds (q)7,000Revenue ($4.10q)$ 28,700Expenses: Packing supplies ($0.30q)2,100Oyster bed maintenance ($3,100)3,100Wages and salaries ($2,400 + $0.45q)5,550Shipping ($0.70q)4,900Utilities ($1,200)1,200Other ($460 + $0.01q)530Total expense17,380Net operating income$ 11,320

The actual results for August were as follows:

Quilcene OysteriaIncome StatementFor the Month Ended August 31Actual pounds7,000Revenue$ 26,700Expenses: Packing supplies2,270Oyster bed maintenance2,960Wages and salaries5,960Shipping4,630Utilities1,010Other1,150Total expense17,980Net operating income$ 8,720

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.)

--------------------------------------------------- Picture of question:

Exerclse 9-3 (Algo) Revenue and Spending Varlances [LO9-3] Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,000 pounds of oysters in August. The company's flexible budget for August appears below: The actual results for August were as follows: Required: Calculate the company's revenue and spending variances for August. (Indleate the effect of eoch varlance by selecting \"F\" for favorable, \"U\" for unfavorable, and \"None\" for no effect (l.e., zero varlance). Input all amounts as positlve values.)