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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: Fixed Cost per Month Cost per Car Washed $0.60 $0.06 $ 0.25 $0.40 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,200 $4,900 $8,200 $2,100 $1,600 $0.83 For example, electricity costs are $1,200 per month plus $0.06 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.40 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 8,400 $ 55, 220 Revenue Expenses : Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 5,480 1,668 2,315 8,580 8, 2ee 2,300 1,749 30, 292 $ 24,928 Required: Calculate the company's revenue and spending variances for August. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values.) Answer is complete but not entirely correct. Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 $ 53,760 Revenue F > Expenses: Cleaning supplies 5,040 X U Electricity 1,704 F Maintenance 2,100 X U 8,280 X U Wages and salaries OOOOOOO Depreciation Rent 8,200 X None 2,300 X U Administrative expenses 1,852 XF Total expense 29,453 xu Net operating income $ 24,304 F 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: Fixed Cost per Month Cost per Car Washed $0.70 $ 0.07 $ 0.25 $ 0.20 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,3ee $4,700 $8,500 $1,800 $1,600 $0.02 For example, electricity costs are $1,300 per month plus $0.07 per car washed. The company expects to wash 8,100 cars In August and to collect an average of $6.70 per car washed. The company actually washed 8,200 cars in August. Required: Calculate the company's activity varlances for August. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.) Answer is complete but not entirely correct. Lavage Rapide Activity Variances For the Month Ended August 31 Revenue $ 54,940 Expenses: Cleaning supplies 5,740 X U Electricity 1,874 x U Maintenance 2,050 X U Wages and salaries 6.340 Depreciation 8,500 X None Rent 1.800 X None Administrative 1.784 expenses Total expense 28.068 Net operating income IS 26.872 F C
