Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,800 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)		7,800
Revenue ($4.15q)	$	32,370
Expenses:
Packing supplies ($0.25q)		1,950
Oyster bed maintenance ($3,500)		3,500
Wages and salaries ($2,500 + $0.35q)		5,230
Shipping ($0.60q)		4,680
Utilities ($1,230)		1,230
Other ($420 + $0.01q)		498
Total expense		17,088
Net operating income	$	15,282

The actual results for August appear below:

Quilcene Oysteria Income Statement For the Month Ended August 31

Actual pounds

7,800

Revenue

$

27,200

Expenses:

Packing supplies

2,120

Oyster bed maintenance

3,360

Wages and salaries

5,640

Shipping

4,410

Utilities

1,040

Other

1,118

Total expense

17,688

Net operating income

$

9,512

Quilcene Oysteria
Revenue and Spending Variances
For the Month Ended August 31
Revenue
Expenses:
Packing supplies
Oyster bed maintenance
Wages and salaries
Shipping
Utilities
Other
Total expense
Net operating income