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 company's costs: Fixed cost Cost per per Month Car Washed cleaning supplies $0.70 Electricity $1,400 $0.05 Maintenance $0.20 Wages and salaries $4,100 $0.30 Depreciation $8,300 Rent $1,900 Administrative expenses $1,300 $0.02 For example, electricity costs should be $1,400 per month plus $0.05 per car washed. The company expects to wash 8,300 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 8,400 Revenue $ 56,880 Expenses: Cleaning supplies 6,310 Electricity 1,785 Maintenance 1,900 Wages and salaries 6,950 Depreciation 8,300 Rent 2,100 Administrative expenses 1,366 Total expense 28,711 Net operating income $ 28, 169 Required: Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Lavago Rapido Revenue and Spending Variances For the Month Ended August 31 Revenue F Expenses: Cleaning supplies U Electricity F Maintenance U Wages and salaries U Depreciation 0 None Rent U Administrative expenses F Total expense Net operating income