Exercise $9-13($Algo$)$ Prepare a Flexible Budget Performance Report $[$LO$9-4]$

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:

Fixed Cost per Month Cost per Car Washed

Cleaning supplies $ $0\mathrm{.}70$

Electricity $ $1,500$ $ $0\mathrm{.}06$

Maintenance $ $0\mathrm{.}30$

Wages and salaries $ $5,000$ $ $0\mathrm{.}30$

Depreciation $ $8,100$

Rent $ $1,900$

Administrative expenses $ $1,500$ $ $0\mathrm{.}01$

For example, electricity costs should be $$1,500$ per month plus $$0\mathrm{.}06$ per car washed. The company expects to wash $8,300$ cars in August and to collect an average of $$6\mathrm{.}50$ 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 $8,400$

Revenue $ $56,050$

Expenses:

Cleaning supplies $6,310$

Electricity $1,968$

Maintenance $2,730$

Wages and salaries $7,850$

Depreciation $8,100$

Rent $2,100$

Administrative expenses $1,483$

Total expense $30,541$

Net operating income $ $25,509$

Required:

Prepare a flexible budget performance report that shows the company$$s revenue and spending variances and 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.