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Exercise 9 - 1 2 ( Algo ) Revenue and Spending Variances [ LO 9 - 3 ] Lavage Rapide is a Canadian company that

Exercise 9-12(Algo) Revenue and Spending Variances [LO9-3]
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 companys costs:
Fixed Cost per Month Cost per Car Washed
Cleaning supplies $ 0.60
Electricity $ 1,400 $ 0.07
Maintenance $ 0.25
Wages and salaries $ 5,000 $ 0.20
Depreciation $ 8,300
Rent $ 2,100
Administrative expenses $ 1,500 $ 0.02
For example, electricity costs should be $1,400 per month plus $0.07 per car washed. The company expects to wash 8,200 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 8,300
Revenue $ 56,220
Expenses:
Cleaning supplies 5,420
Electricity 1,944
Maintenance 2,290
Wages and salaries 7,000
Depreciation 8,300
Rent 2,300
Administrative expenses 1,564
Total expense 28,818
Net operating income $ 27,402
Required:
Calculate the company's revenue and spending 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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