Question
avage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the
avage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the companys costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.60 Electricity $ 1,500 $ 0.09 Maintenance $ 0.15 Wages and salaries $ 4,300 $ 0.30 Depreciation $ 8,100 Rent $ 1,900 Administrative expenses $ 1,500 $ 0.04 For example, electricity costs should be $1,500 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.70 per car washed. The company actually washed 8,500 cars in August. Required: Calculate the company's activity variances for August. Note: 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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