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How do you solve this? 7 25 pints Mc Graw Exercise 9-13 Revenue and Spending Variances [LO9-3] Lavage Rapide is a Canadian company that owns
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7 25 pints Mc Graw 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 Cleaning supplies $0.80 Electricity $1,100 $0.06 Maintenance $0.25 Wages and salaries $4,600 $0.40 Depreciation $0,300 Rent $2,000 Administrative expenses $1,600 $0.04 For example, electricity costs are $1,100 per month plus $0.06 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.80 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 8,600 84 and to collect an average of $6.80 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 8,600 Revenue. $59,900 Expenses: Cleaning supplies 7,300 Electricity 1,580 Maintenance 2,365 Wages and salaries Depreciation 8,360 8,300 Rent 2,200 Administrative expenses 1,840 Total expense 31,945 Net operating income $27,955 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. *** favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Answer is not complete. Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Revenue $ 57,800 Expenses: 6,800 1,610 4,490 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation. Rent Administrative expenses Total expense Net operating income XX F F U U U **** Step by Step Solution
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