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1 8 00 Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table
1 8 00 Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Cleaning supplies points eBook Print References Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month Cost per Car Washed $0.80 $1,000 $0.09 $0.15 $5,000 $0.30 $8,300 $1,900 $1,600 $0.04 For example, electricity costs are $1,000 per month plus $0.09 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.60 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,100 Revenue $54,900 Expenses: Cleaning supplies 6,900 Electricity 1,690 Maintenance 1,440 Wages and salaries 7,760 Depreciation 8,300 Rent 2,100 Administrative expenses 1,820 Total expense 30,010 Net operating income $24,890 Required: 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.)
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