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 company's costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.50 Electricity $ 1,200 $ 0.06 Maintenance $ 0.15 Wages and salaries $ 5,000 $ 0.30 Depreciation $ 8,200 Rent $ 1,900 Administrative expenses $ 1,700 $ 0.02 For example, electricity costs should be $1,200 per month plus $0.06 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.60 per car washed. Required: Prepare the company's planning budget for August. 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 company's costs: Cost per Car Washed Fixed Cost per Month Cleaning supplies $ 0.40 Electricity $ 1,100 $ 0.07 Maintenance $ 0.25 $ 4,100 $ 0.30 $ 8,100 $ 1,800 $ 1,600 $ 0.01 Wages and salaries. Depreciation Rent Administrative expenses For example, electricity costs should be $1,100 per month plus $0.07 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.50 per car washed. Required: Prepare the company's flexible budget for August. You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company's costing system and do what you can to help us get better control of our manufacturing overhead costs." You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Utilities Maintenance Supplies Indirect labor Depreciation Cost Formula $16,900 + $0.16 per machine-hour $38,500 + $2.00 per machine-hour $0.80 per machine-hour $94,900 + $2.10 per machine-hour $68,000 Actual Cost in March $ 22,540 $ 80,300 $ 19,000 $ 146,200 $ 69,700 During March, the company worked 22,000 machine-hours and produced 16,000 units. The company had originally planned to work 24,000 machine-hours during March. Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March