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 companys costs:

For example, electricity costs are $1,200 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.70 per car washed.

The actual operating results for August are as follows:

Calculate the company's revenue and spending variances for August.

Fixed Cost per Month Cost per Car Washed $0.60 $0.08 $0.15 $0.30 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,200 $5,000 $8,300 $1,900 $1,300 $0.02 Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,100 $55,700 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 5,300 1,810 1,440 7,760 8,300 2,100 1,360 28,070 $27,630 Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income