Question
Exercise 9-13 Revenue and Spending Variances [LO9-3] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal.
Exercise 9-13 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 data concerning the companys costs:
Fixed Cost per Month | Cost per Car Washed | ||||||
Cleaning supplies | $ | 0.80 | |||||
Electricity | $ | 1,200 | $ | 0.08 | |||
Maintenance | $ | 0.25 | |||||
Wages and salaries | $ | 4,300 | $ | 0.20 | |||
Depreciation | $ | 8,400 | |||||
Rent | $ | 1,800 | |||||
Administrative expenses | $ | 1,400 | $ | 0.03 | |||
For example, electricity costs are $1,200 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.60 per car washed.
The actual operating results for August appear below.
Lavage Rapide | ||
Income Statement | ||
For the Month Ended August 31 | ||
Actual cars washed | 8,500 | |
Revenue | $ | 57,540 |
Expenses: | ||
Cleaning supplies | 7,220 | |
Electricity | 1,842 | |
Maintenance | 2,340 | |
Wages and salaries | 6,340 | |
Depreciation | 8,400 | |
Rent | 2,000 | |
Administrative expenses | 1,552 | |
Total expense | 29,694 | |
Net operating income | $ | 27,846 |
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 (i.e., zero variance). Input all amounts as positive values.)
Answer is not complete.
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The ones in bold are the answers that I keep getting. If you could show how to get the three answers in bold please.
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