Exercise 9-12 Prepare a Report Showing Revenue and Spending Variances [LO3]

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

Fixed Cost per Month

Cost per Car Washed

Cleaning supplies				$	0.60
Electricity	$	1,300		$	0.08
Maintenance				$	0.25
Wages and salaries	$	4,200		$	0.40
Depreciation	$	8,100
Rent	$	1,900
Administrative expenses	$	1,500		$	0.01

For example, electricity costs are $1,300 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in October and to collect an average of $6.30 per car washed.

The actual operating results for October appear below:

Auto Lavage Income Statement For the Month Ended October 31
Actual cars washed		8,500
Revenue	$	55,020
Expenses:
Cleaning supplies		5,540
Electricity		1,942
Maintenance		2,340
Wages and salaries		7,920
Depreciation		8,100
Rent		2,100
Administrative expenses		1,484
Total expense		29,426
Net operating income	$	25,594

Required:

Compute the company's revenue and spending variances for October. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

Auto Lavage Revenue and Spending Variances For the Month Ended October 31
Revenue	$	(Click to select)NoneFU
Expenses:
Cleaning supplies		(Click to select)NoneFU
Electricity		(Click to select)UNoneF
Maintenance		(Click to select)NoneUF
Wages and salaries		(Click to select)NoneUF
Depreciation		(Click to select)NoneUF
Rent		(Click to select)NoneUF
Administrative expenses		(Click to select)NoneFU
Total expense		(Click to select)NoneFU
Net operating income	$	(Click to select)FNoneU