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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: per month Cleaning supplies Electricity Maintenance Hages and salaries Depreciation Rent Administrative expenses Fixed Cost Cost per Car Kashed $ 0.29 $ 1,200 $ 0.08 $ 0.25 $ 4,90 $ 0.40 $ 3,268 $ 2,180 $ 1,600 $ 0.02 For example, electricity costs should be $1,300 per month plus $0.08 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.20 per car washed. The actual operating results for August are as follows: 8,200 $ 52,320 Lavage Rapide Income statement For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Heges and salaries Depreciation Rent Administrative expenses Total expense Net operating income 6,989 1,918 2,265 8,580 8,290 2,380 1,662 31,825 $ 29,495 Required: Calculate the company's revenue and spending variances for August. iInelcate the effect of each verlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect le., zero variances. Input all amounts as positive values
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