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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
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 | $ 1,100 | $ 0.08 | |
Maintenance | $ 0.10 | ||
Wages and salaries | $ 4,200 | $ 0.20 | |
Depreciation | $ 8,200 | ||
Rent | $ 1,900 | ||
Administrative expenses | $ 1,500 | $ 0.05 |
For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.00 per car washed. The company actually washed 8,100 cars in August.
Required:
Calculate the company's activity variances for August.
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