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Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7 , 4 0 0 pounds of oysters in August.

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,400 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)7,400
Revenue ($4.20q) $ 31,080
Expenses:
Packing supplies ($0.30q)2,220
Oyster bed maintenance ($3,100)3,100
Wages and salaries ($2,300+ $0.25q)4,150
Shipping ($0.75q)5,550
Utilities ($1,250)1,250
Other ($460+ $0.01q)534
Total expense 16,804
Net operating income $ 14,276
The actual results for August appear below:
Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds 7,400
Revenue $ 27,300
Expenses:
Packing supplies 2,390
Oyster bed maintenance 2,960
Wages and salaries 4,560
Shipping 5,280
Utilities 1,060
Other 1,154
Total expense 17,404
Net operating income $ 9,896
Required:
Calculate the companys revenue and spending variances for August.
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,400 pounds of oysters in
August. The company's flexible budget for August appears below:
The actual results for August appear below:
Required:
Calculate the company's 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.)
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