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 $ $0\mathrm{.}50$

Electricity $ $1,200$ $ $0\mathrm{.}07$

Maintenance $ $0\mathrm{.}25$

Wages and salaries $ $5,000$ $ $0\mathrm{.}40$

Depreciation $ $8,400$

Rent $ $1,900$

Administrative expenses $ $1,300$ $ $0\mathrm{.}01$

For example, electricity costs should be $$1,200$ per month plus $$0\mathrm{.}07$ per car washed. The company expects to wash $8,400$ 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 $8,500$

Revenue $ $56,700$

Expenses:

Cleaning supplies $4,700$

Electricity $1,758$

Maintenance $2,340$

Wages and salaries $8,720$

Depreciation $8,400$

Rent $2,100$

Administrative expenses $1,284$

Total expense $29,302$

Net operating income $ $27,398$

Required:

Prepare a flexible budget performance report that shows the company$$s revenue and spending variances and activity variances for August. $($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.$)$