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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 the

image text in transcribed 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 $ 0.80 $ 1,500 $ 0.08 $ 0.15 $ 4,800 $ 0.20 $ 8,400 $ 2,000 $ 1,400 $ 0.03 For example, electricity costs should be $1,500 per month plus $0.08 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.10 per car washed. The company actually washed 8,400 cars in August. Required: Calculate the company's 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.) Answer is not complete. Lavage Rapide Activity Variances For the Month Ended August 31 Revenue $ 6,180 F Expenses: Cleaning supplies 70 F Electricity 98 F Maintenance 870 F Wages and salaries U Depreciation 300 F Rent 200 U Administrative expenses 210 F Total expense U Net operating income $ 7,202 U

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