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3 Exercise 9-11 (Algo) Activity Variances [LO9-2] 10 points Lavage Rapide is a Canadian company that owns and operates a large automatic car wash
3 Exercise 9-11 (Algo) Activity Variances [LO9-2] 10 points Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: eBook Print Cleaning supplies Electricity Maintenance References Wages and salaries Depreciation Rent Administrative expenses Fixed Cost Cost per per Month Car Washed $ 0.40 $ 1,300 $ 0.06 $ 0.15 $ 4,800 $ 0.30 $ 8,100 $ 1,800 $ 1,600 $ 0.03 For example, electricity costs should be $1,300 per month plus $0.06 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.20 per car washed. The company actually washed 8,600 cars in August. Required: Calculate the company's activity 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.) Revenue Expenses: Lavage Rapide Activity Variances For the Month Ended August 31 Cleaning supplies
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