Reference no: EM132587208
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,400 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) 7,400 Revenue ($4.15q) $30,710
Expenses: Packing supplies ($0.40q) 2,960
Oyster bed maintenance ($3,200) 3,200
Wages and salaries ($2,200 + $0.30q) 4,420
Shipping ($0.70q) 5,180 Utilities ($1,300) 1,300
Other ($470 + $0.01q) 544
Total expense 17,604
Net operating income$13,106
The actual results for August appear below:
Quilcene Oysteria Income Statement For the Month Ended August 31
Actual pounds 7,400
Revenue$27,200
Expenses:
Packing supplies 3,130
Oyster bed maintenance 3,060
Wages and salaries 4,830
Shipping 4,910
Utilities 1,110
Other 1,164
Total expense 18,204
Net operating income$8,996
Required:
Question 1: Calculate the company's 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.)