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Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,200...

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,200 pounds of oysters in August. The company’s flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (q) 7,200 Revenue ($4.05q) $ 29,160 Expenses: Packing supplies ($0.35q) 2,520 Oyster bed maintenance ($3,500) 3,500 Wages and salaries ($2,000 + $0.25q) 3,800 Shipping ($0.65q) 4,680 Utilities ($1,260) 1,260 Other ($460 + $0.01q) 532 Total expense 16,292 Net operating income $ 12,868 The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,200 Revenue $ 26,800 Expenses: Packing supplies 2,690 Oyster bed maintenance 3,360 Wages and salaries 4,210 Shipping 4,410 Utilities 1,070 Other 1,152 Total expense 16,892 Net operating income $ 9,908 Required: Calculate the company’s revenue and spending variances for August.

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Quilcene Oysteria
flexible budget
For the Month Ended August 31
Actual pounds (q) 7,200
Revenue ($4.05q) $ 29,160
Expenses:
Packing supplies ($0.35q) 2,520
Oyster bed maintenance ($3,500) 3,500
Wages and salaries ($2,000 + $0.25q) 3,800
Shipping ($0.65q) 4,680
Utilities ($1,260) 1,260
Other ($460 + $0.01q) 532
Total expense $16,292
Net operating income $12,868
Quilcene Oysteria
Income statement
For the Month Ended August 31
Actual pounds (q) 7,200
Revenue $ 26,800
Expenses:
Packing supplies 2,690
Oyster bed maintenance 3,360
Wages and salaries 4,210
Shipping 4,410
Utilities 1,070
Other 1,152
Total expense $16,892
Net operating income $ 9,908
Quilcene Oysteria
Revenue and spending variances
For the Month Ended August 31
ACTUAL RESULTS FLEXIBLE BUDGET REVENUE AND SPENDING VARIANCES
Pounds (q) 7,200 7,200
Revenue ($4.05q) $ 26,800 $ 29,160 $2,360(U)
Expenses:
Packing supplies ($0.35q) 2,690 2,520 $170(U)
Oyster bed maintenance($3,500) 3,360 3,500 $140(F)
Wages and salaries ($2,000 + $0.25q) 4,210 3,800 $410(U)
Shipping ($0.65q) 4,410 4,680 $270(F)
Utilities ($1,260) 1,070 1,260 $190(F)
Other ($460 + $0.01q) 1,152 532 $620(U)
Total expense $16,892 $16,292 $600(U)
Net operating income $ 9,908 $ 12,868 $2,960(U)

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