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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
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 Cost per per Month Car Washed Cleaning supplies 5 6.59 Electricity $ 1,399 $ 9.19 Maintenance 5 6.25 wages and salaries 5 4,999 $ 6.29 Depreciation 5 8,199 Rent :5 1,999 Administrative expenses 5 1,499 $ 0.93 For example, electricity costs should be $1.300 per month plus $010 per car washed. The company expects to wash 8300 cars in August and to collect an average of $6.20 per car washed. The actual operating results tor August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,499 Revenue $ 53,569 Expenses: Cleaning supplies 4,659 E lectric ity 2, 199 Maintenance 2,315 wages and salaries 6,929 Depreciation 8,199 Rent 2,199 Administrative expenses 1,549 Total expense 27,734 Net operating income $ 25.325 Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances tor 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.) Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and 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.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Flexible Planning Results Budget Budget Cars washed 8,400 Revenue $ 53,560 Expenses: Cleaning supplies 4.650 Electricity 2,100 Maintenance 2,315 Wages and salaries 6.920 Depreciation 8,100 Rent 2,100 Administrative expenses 1,549 Total expense 27,734 Net operating income $ 25,826
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