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				$	0.70
Electricity	$	1,400		$	0.07
Maintenance				$	0.15
Wages and salaries	$	4,300		$	0.30
Depreciation	$	8,100
Rent	$	1,800
Administrative expenses	$	1,600		$	0.04

For example, electricity costs should be $1,400 per month plus $0.07 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 actual operating results for August are as follows:

Lavage Rapide
Income Statement
For the Month Ended August 31
Actual cars washed		8,400
Revenue	$	51,900
Expenses:
Cleaning supplies		6,310
Electricity		1,951
Maintenance		1,485
Wages and salaries		7,150
Depreciation		8,100
Rent		2,000
Administrative expenses		1,832
Total expense		28,828
Net operating income	$	23,072

Required:

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

Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Revenue and Flexible Results Spending Variances Budget Activity Variances Planning Budget Cars washed 8,400 $ 51,900 6,310 1,951 1,485 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 7,150 8,100 2,000 1,832 28,828 23,072 $