Question
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 $ 1,000 $ 0.10 Maintenance $ 0.20 Wages and salaries $ 4,500 $ 0.30 Depreciation $ 8,100 Rent $ 1,900 Administrative expenses $ 1,700 $ 0.03 For example, electricity costs should be $1,000 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.00 per car washed. The company actually washed 8,400 cars in August. Required: Calculate the company's activity variances for August.
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