Question
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000 pounds of oysters in August. The companys flexible budget
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000 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) 8,000 Revenue ($4.15q) $ 33,200 Expenses: Packing supplies ($0.40q) 3,200 Oyster bed maintenance ($3,300) 3,300 Wages and salaries ($2,400 + $0.30q) 4,800 Shipping ($0.75q) 6,000 Utilities ($1,280) 1,280 Other ($450 + $0.01q) 530 Total expense 19,110 Net operating income $ 14,090 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 8,000 Revenue $ 26,800 Expenses: Packing supplies 3,370 Oyster bed maintenance 3,160 Wages and salaries 5,210 Shipping 5,730 Utilities 1,090 Other 1,150 Total expense 19,710 Net operating income $ 7,090 Required: Calculate the companys 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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