Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company

harvestedandsold8,000poundsofoystersinAugust.Thecompany'sflexible budget for

August appears below:

Quilcene Oysteria

Flexible Budget

For the Month Ended August 31

Actual pounds (q).........................................8000

Revenue ($4.00q) .........................................32000

Expenses:

Packing supplies ($0.50q) ........................4000

Oyster bed maintenance ($3,200) ............3200

Wages and salaries ($2,900 + $0.30q) .....5300

Shipping ($0.80q).....................................6400

Utilities ($830) .........................................830

Other ($450 + $0.05q)..............................850

Total expense ...............................................20580

Net operating income ...................................11420

The actual results for August appear below:

Quilcene Oysteria

Income Statement

For the Month Ended August 31

Actual pounds ..............................................8000

Revenue........................................................35200

Expenses:

Packing supplies.......................................4200

Oyster bed maintenance ...........................3100

Wages and salaries ...................................5640

Shipping ...................................................6950

Utilities.....................................................810

Other.........................................................980

Total expense ...............................................21680

Net operating income ...................................13520

Required:

Prepareareportshowingthecompany'srevenueandspendingvariancesfor

August.