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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 cost:
Fixed Cost per Month Cost per Car Washed
Cleaning supplies $
Electricity $ $
Maintenance $
Wages and salaries $ $
Depreciation $
Rent $
Administrative expense $ $
For example, electricity costs should be $ per monty plus $ per car washed. The company expects to wash cars in August and to collect an average of $ per car washed. The company actually washed cars in August.
Calculate the company's activity variance for August. Indicate the effect of each variance by selecting F for favorabel, U for unfavorable, and "None" for no effect ie zero variance Input all amounts as positive values.
Lavage Rapide Activity Variances for the Month Ended August
Revenue
Expenses
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administration expenses
Total expense
Net operating income
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