4 2 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: points cleaning supplies Electricity Maintenance lages and salaries Depreciation eBook Rent Administrative expenses Print Fixed Cost Cost per Car per Month Washed $ 0.70 $ 1,200 $ 0.09 $ 0.25 $ 4,300 $ 0.20 $ 8,100 $ 1,500 $ 1,500 $ 0.02 For example, electricity costs should be $1,200 per month plus $0.09 per car washed. The company expects to wash 8,400 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 Revenue Expenses: Cleaning supplies Electricity Maintenance llages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Required: 3,500 $ 57,540 6,350 1,926 2,340 6,340 8,100 2,000 1,568 28,654 $ 28,885 Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Cars washed Revenue Actual Results 8,500 $ 57,540 Expenses: Cleaning supplies 6,380 Electricity 1,926 Maintenance 2,340 Wages and salaries 6,340 Depreciation 8,100 Rent 2,000 Administrative expenses 1,568 Total expense 28,654 Net operating Income $ 28,886 Flexible Budget Planning Budget