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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 data concerning the
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost per Month $1,200 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.80 $0.08 $0.25 $0.30 $4,500 $8,300 $2,280 $1,600 $0.63 For example, electricity costs are $1.200 per month plus $0.08 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.00 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 8,4ee Revenue $ 51, see Expenses: Cleaning supplies 7,140 Electricity 1.834 Maintenance 2.315 Wages and salaries 7,35 Depreciation 8,300 Rent 2.400 Administrative expenses 1,749 Total expense 31,688 Net operating inconte $ 20,812 Required: Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (L.e., zero variance). Input all amounts as positive values. Do not round Intermediate calculations.) Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income
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