Flexible Budget Preformance Report

$ 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 Car Month Washed Cleaning supplies $ 0.50 Electricity 1,400 $ 0.10 Maintenance $ 0.25 Wages and salaries 4,400 $ 0.20 Depreciation 8,100 Rent $ 2,000 Administrative expenses 1,500 $ 0.03 For example, electricity costs should be $1.400 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6,40 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 55, 220 Expenses: Cleaning supplies 4,650 Electricity 2,200 Maintenance 2,315 Wages and salaries 6,420 Depreciation 8,100 Rent 2,200 Administrative expenses 1,649 Total expense 27,534 Net operating income 27,686 Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity 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 complete but not entirely correct. Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Revenue and Actual Results Spending Flexible Variances Budget Activity Variances 8.400 8,600 $ 55,220 $ 1,490F $ 56,760 $ 3.840 F Planning Budget 8,400 $ 52.920 +3,360 Cars washed Revenue Expenses Cleaning supplies Electricity Maintenance Wages and salarios Depreciation Rant Administrative expenses Total expense Net operating income 215 4,650 2200 2,315 6420 8.100 2.200 1,649 27,534 $ 27,686 400 U 35 F U 390 8g 0 None 200U 103F 1.067 U 423 F OOOOOOO 6,020 2.680 U 1,988 352U 2,580 1,740U 7,080 1.100 U 8.300 200 None 1.900 X 100 None 1.944 376 U 29,812 X 5,224 U 26,948 $ 1.384 F 2,340 840 x 5.980 8,500 X x OOOOOO 2.000 1,568 24,588 $ 28,332 $