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Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning
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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost Cost per per Month Car Washed $ 0.50 $ 1,400 $ 0.10 $ 0.20 $ 4,900 $ 0.40 $ 8,300 $ 2,100 $ 1,700 $ 0.05 For example, electricity costs should be $1,400 per month plus $0.10 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.70 per car washed. The company actually washed 8,500 cars in August. Required: Calculate the company's 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.
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