Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold...
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Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,100 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)
7,100
Revenue ($4.20q)
$ 29,820
Expenses:
Packing supplies ($0.30q)
2,130
Oyster bed maintenance ($3,200)
3,200
Wages and salaries ($2,000 + $0.30q)
4,130
Shipping ($0.80q)
5,680
Utilities ($1,280)
1,280
Other ($450 + $0.01q)
521
Total expense
16,941
Net operating income
$ 12,879
The actual results for August appear below:
Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds
7,100
Revenue
$ 27,000
Expenses:
Packing supplies
2,300
Oyster bed maintenance
3,060
Wages and salaries
4,540
Shipping
5,410
Utilities
1,090
Other
1,141
Total expense
17,541
Net operating income
$ 9,459
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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