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

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,700 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)	7,700
Revenue ($4.25q)	$ 32,725
Expenses:
Packing supplies ($0.35q)	2,695
Oyster bed maintenance ($3,200)	3,200
Wages and salaries ($2,300 + $0.25q)	4,225
Shipping ($0.55q)	4,235
Utilities ($1,260)	1,260
Other ($410 + $0.01q)	487
Total expense	16,102
Net operating income	$ 16,623

The actual results for August appear below:

Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds	7,700
Revenue	$ 26,700
Expenses:
Packing supplies	2,865
Oyster bed maintenance	3,060
Wages and salaries	4,635
Shipping	3,965
Utilities	1,070
Other	1,107
Total expense	16,702
Net operating income	$ 9,998