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

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Accounting

Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,200 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) 7,200
Revenue ($4.25q) $ 30,600
Expenses:
Packing supplies ($0.25q) 1,800
Oyster bed maintenance ($3,500) 3,500
Wages and salaries ($2,600 + $0.35q) 5,120
Shipping ($0.75q) 5,400
Utilities ($1,210) 1,210
Other ($440 + $0.01q) 512
Total expense 17,542
Net operating income $ 13,058

The actual results for August appear below:

Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds 7,200
Revenue $ 27,400
Expenses:
Packing supplies 1,970
Oyster bed maintenance 3,360
Wages and salaries 5,530
Shipping 5,130
Utilities 1,020
Other 1,132
Total expense 18,142
Net operating income $ 9,258

Required:

Calculate the companys revenue and spending variances for August.

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