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 Return to Cost per Car Washed Cleaning supplies $ 0.70 Electricity $ 1,300 $ 0.09 Maintenance $ 0.15 Wages and salaries $ 4,300 $ 0.30 Depreciation $ 8,000 Rent $ 1,800 $ 1,600 $ 0.05 Administrative expenses For example, electricity costs should be $1,300 per month plus $0.09 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $5.90 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 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 8,600 $ 52,250 6,450 2,035 1,515 7,210 8,000 2,000 1,925 29,135 $ 23,115 < Prev 1 of 4 Next > . Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. Note: 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. Cars washed Revenue Answer is not complete. Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Results Flexible Budget 8,600 8,600 $ 52,250 F $ 50,740 Planning Budget 8,500 $ 50,150 ( Expenses: Cleaning supplies 6,450 U 6,020 U 5,950 Electricity 2,035 F 2,074 U 2,065 Maintenance 1,515 U 1,290 U 1,275 Wages and salaries 7,210 U 6,880 U 6,850 Depreciation 8,000 None 8,000 None 8,000 Rent 2,000 U 1,800 None 1,800 Administrative expenses 1,925 F 2,030 U 2,025 Total expense 29,135 28,094 27,965 Net operating income $ 23,115 < Prev 1 of 4 Next > Return to