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 companys costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.50 Electricity $ 1,400 $ 0.06 Maintenance $ 0.25 Wages and salaries $ 4,200 $ 0.40 Depreciation $ 8,100 Rent $ 2,000 Administrative expenses $ 1,300 $ 0.01 For example, electricity costs should be $1,400 per month plus $0.06 per car washed. The company expects to wash 8,400 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

Lavage Rapide
Income Statement
For the Month Ended August 31
Actual cars washed	8,500
Revenue	$ 59,220
Expenses:
Cleaning supplies	4,700
Electricity	1,874
Maintenance	2,340
Wages and salaries	7,920
Depreciation	8,100
Rent	2,200
Administrative expenses	1,284
Total expense	28,418
Net operating income	$ 30,802

Required:

Prepare a flexible budget performance report that shows the companys revenue and spending variances and activity variances for August.

Lavage Rapide
Income Statement
For the Month Ended August 31
Actual cars washed	8,500
Revenue	$ 59,220
Expenses:
Cleaning supplies	4,700
Electricity	1,874
Maintenance	2,340
Wages and salaries	7,920
Depreciation	8,100
Rent	2,200
Administrative expenses	1,284
Total expense	28,418
Net operating income	$ 30,802

Required:

Prepare a flexible budget performance report that shows the companys revenue and spending variances and activity variances for August.

Lavage RapideFlexible Budget Performance ReportFor the Month Ended August 31Actual ResultsFlexible BudgetPlanning BudgetCars washed8,500Revenue$59,220Expenses:Cleaning supplies4,700Electricity1,874Maintenance2,340Wages and salaries7,920Depreciation8,100Rent2,200Administrative expenses1,284Total expense28,418Net operating income$30,802