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Fantastic29 Cleaners owns and operates a large automatic laundry facility in Winchester. The company expects to process 8,100 loads of laundry in June and
Fantastic29 Cleaners owns and operates a large automatic laundry facility in Winchester. The company expects to process 8,100 loads of laundry in June and to collect an average of $6.70 per load processed. The following table provides data concerning the company's costs: Cost per Fixed Cost Detergents and Softeners Equipment Maintenance Staff Compensation Utilities per Month Equipment Depreciation Facility Lease Administrative Expenses Load of Laundry $ 0.70 $ 0.10 $ 4,400 $ 0.20 $ 1,400 $ 0.06 $ 8,200 $ 2,000 $ 1,700 $ 0.01 For example, utilities costs are $1,400 per month plus $0.06 per load of laundry. The actual operating results for June are as follows: Fantastic29 Cleaners Income Statement For the Month Ended June 30 Actual loads processed Revenue Expenses: Detergents and Softeners Equipment Maintenance Staff Compensation Utilities Equipment Depreciation Facility Lease Administrative Expenses Total expense Net operating income Required: 8,200 $ 56,370 6,170 1,050 6,380 1,856 8,200 2,200 1,681 27,537 $ 28,833 Calculate the company's REVENUE and SPENDING VARIANCES for June.
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