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 Cost per

Car Washed

Cleaning supplies $ $0\mathrm{.}60$

Electricity $ $1,100$ $ $0\mathrm{.}09$

Maintenance $ $0\mathrm{.}25$

Wages and salaries $ $5,000$ $ $0\mathrm{.}20$

Depreciation $ $8,400$

Rent $ $2,200$

Administrative expenses $ $1,400$ $ $0\mathrm{.}03$

For example, electricity costs are $$1,100$ per month plus $$0\mathrm{.}09$ per car washed. The company expects to wash $8,000$ cars in August and to collect an average of $$6\mathrm{.}30$ per car washed.

The actual operating results for August appear below.

Lavage Rapide

Income Statement

For the Month Ended August $31$

Actual cars washed $8,100$

Revenue $ $52,500$

Expenses:

Cleaning supplies $5,300$

Electricity $1,790$

Maintenance $2,240$

Wages and salaries $6,960$

Depreciation $8,400$

Rent $2,400$

Administrative expenses $1,540$

Total expense $28,630$

Net operating income $ $23,870$

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.$)$

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.$)$