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 7,700 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 ($4.15q) $ 31,955
Expenses:
Packing supplies ($0.40q) 3,080
Oyster bed maintenance ($3,500) 3,500
Wages and salaries ($2,500 + $0.40q) 5,580
Shipping ($0.60q) 4,620
Utilities ($1,200) 1,200
Other ($510 + $0.01q) 587
Total expenses 18,567
Net operating income $ 13,388

The actual results for August were as follows:

Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds 7,700
Revenue $ 27,300
Expenses:
Packing supplies 3,250
Oyster bed maintenance 3,360
Wages and salaries 5,990
Shipping 4,350
Utilities 1,010
Other 1,207
Total expenses 19,167
Net operating income $ 8,133

Required:

Calculate the companys revenue and spending variances for August.

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