Comprehensive Problem (30 pts)

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the companys costs:

	Fixed Cost per Month	Cost per Car Washed
Cleaning supplies		$0.80
Electricity	$1,200	$0.15
Maintenance		$0.20
Wages and salaries	$5,000	$0.30
Depreciation	$6,000
Rent	$8,000
Administrative expenses	$4,000	$0.10

For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed.

1. Prepare a flexible budget performance report that shows the companys revenue and spending variances and the activity variances for August: (6 pts)