Answer:
Quilcene Oysteria
Computation of revenue and spending variances for August:
                                                                 Flexible      Actual      Variance
For the Month Ended August 31
Actual pounds (q)                                    7,200         7,200        None
Revenue ($4.20q)                                  $30,240    27,200      $3,040   U
Expenses:
Packing supplies ($0.35q)                        2,520      2,690           -170    U
Oyster bed maintenance ($3,300)           3,300       3,160            140    F
Wages and salaries ($2,000 + $0.35q)   4,520      4,930          -410    U
Shipping ($0.65q)                                     4,680        4,410           270    F
Utilities ($1,290)                                         1,290        1,100            190    F
Other ($460 + $0.01q)                                532         1,152          -620   U
Total expense                                         16,842      17,442          -600   U
Net operating income                          $13,398    $9,758       -3,640   U
Explanation:
Quilcene Oysteria
's budget comparison with actual performance shows that there is an unfavorable variance of $3,640 arising from the less than impressive sales revenue and excessive spending incurred during August.  The firm realized less revenue than budgeted and incurred more expenses than budgeted.  The result is this unfavorable variance of $3,640.