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 Oysteria
Flexible Budget
For the Month Ended August 31
Actual pounds (q)	7,000
Revenue ($4.15q)	$ 29,050
Expenses:
Packing supplies ($0.30q)	2,100
Oyster bed maintenance ($3,200)	3,200
Wages and salaries ($2,400 + $0.50q)	5,900
Shipping ($0.70q)	4,900
Utilities ($1,230)	1,230
Other ($410 + $0.01q)	480
Total expense	17,810
Net operating income	$ 11,240

The actual results for August were as follows:

Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds	7,000
Revenue	$ 27,100
Expenses:
Packing supplies	2,270
Oyster bed maintenance	3,060
Wages and salaries	6,310
Shipping	4,630
Utilities	1,040
Other	1,100
Total expense	18,410
Net operating income	$ 8,690

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.)