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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 ($4.15q) $ 31,125
Expenses:
Packing supplies ($0.30q) 2,250
Oyster bed maintenance ($3,600) 3,600
Wages and salaries ($2,200 + $0.45q) 5,575
Shipping ($0.80q) 6,000
Utilities ($1,270) 1,270
Other ($440 + $0.01q) 515
Total expense 19,210
Net operating income $ 11,915

The actual results for August were as follows:

Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds 7,500
Revenue $ 26,900
Expenses:
Packing supplies 2,420
Oyster bed maintenance 3,460
Wages and salaries 5,985
Shipping 5,730
Utilities 1,080
Other 1,135
Total expense 19,810
Net operating income $ 7,090

Required:

Calculate the companys revenue and spending variances for August.

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