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:

For example, electricity costs should be $$1,500$ per month plus $$0\mathrm{.}09$ per car washed.

The company expects to wash $8,300$ cars in August and to collect an average of

$$5\mathrm{.}90$ per car washed.

The actual operating results for August are as follows: Required:

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.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 $ $0\mathrm{.}70$

Electricity $ $1,500$ $ $0\mathrm{.}09$

Maintenance $ $0\mathrm{.}25$

Wages and salaries $ $4,300$ $ $0\mathrm{.}40$

Depreciation $ $8,300$

Rent $ $1,800$

Administrative expenses $ $1,700$ $ $0\mathrm{.}04$

For example, electricity costs should be $$1,500$ per month plus $$0\mathrm{.}09$ per car washed. The company expects to wash $8,300$ cars in August and to collect an average of $$5\mathrm{.}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 $8,400$

Revenue $ $51,070$

Expenses:

Cleaning supplies $6,310$

Electricity $2,217$

Maintenance $2,315$

Wages and salaries $7,980$

Depreciation $8,300$

Rent $2,000$

Administrative expenses $1,932$

Total expense $31,054$

Net operating income $ $20,016$

Required:

Prepare a flexible budget performance report that shows the company$$s revenue and spending variances and activity variances for August.