Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000 pounds of oysters in May. The actual results and planning budget for May appear below: Quilcene Oysteria Farms Operating Data for Month Ending May 31 Actual Planning Budget Pounds of oysters (9) 8,000 8,700 Revenue ($4.00) $35,200 $34,800 Expenses: Packing ($0.509) 4,200 4,350 Oyster bed maintenance 3,100 3,200 ($3,200) Wages ($2,900 + $0.309) 5,510 Shipping ($0.809) 6,950 6,960 Utilities ($830) 830 Admin expenses ($450+ 980 885 $0.059) Total expenses 21,680 21,735 Net operating income $13,520 13,065 5,640 810 Required: 1. Prepare a report showing the company's revenue and spending variances for May. You can use the template on the next page or use your own. 2. What variances would be of greatest interest to the management team of the oyster farm? Briefly interpret those results. Planning Budget 8,700 $34,800 4,350 Quilcene Oysteria Farms Flexible Budget Performance Report for Month Ending May 31 Revenue and Flexible Activity Actual Spending Budget Variances Variances Pounds of oysters (9) 8,000 Revenue ($4.00) $35,200 Expenses: Packing ($0.50q) 4,200 Oyster bed maintenance 3,100 ($3,200) Wages ($2,900 + 5,640 $0.300) Shipping ($0.809) 6,950 Utilities ($830) 810 Admin expenses ($450 980 + $0.059) Total expenses 21,680 Net operating income $13,520 3,200 5,510 6,960 830 885 21,735 13,065 Interpretation of the report