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Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,500 pounds of oysters in August. The companys flexible budget

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,500 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) 7,500
Revenue ($4.05q) $ 30,375
Expenses:
Packing supplies ($0.25q) 1,875
Oyster bed maintenance ($3,100) 3,100
Wages and salaries ($2,200 + $0.45q) 5,575
Shipping ($0.65q) 4,875
Utilities ($1,260) 1,260
Other ($510 + $0.01q) 585
Total expense 17,270
Net operating income $ 13,105

The actual results for August appear below:

Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds 7,500
Revenue $ 26,800
Expenses:
Packing supplies 2,045
Oyster bed maintenance 2,960
Wages and salaries 5,985
Shipping 4,605
Utilities 1,070
Other 1,205
Total expense 17,870
Net operating income $ 8,930

Required:

Calculate the companys revenue and spending variances for August.

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