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 company's costs: Fixed Cost per Month cost per Car Washed $0.60 $0.10 $0.10 $1,300 $0.25 cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $4,200 $0.20 $8,100 $2,000 $1,400 $0.02 For example, electricity costs are $1,300 per month plus $0.10 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.50 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,100 $ 54,100 Revenue Expenses: cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 5,300 2,070 2,240 6,160 8,100 2,200 1,460 27,530 $ 26,570 Prey 5 of 7 - Next >