Question
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 companys costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.50 Electricity $ 1,200 $ 0.08 Maintenance $ 0.20 Wages and salaries $ 4,900 $ 0.40 Depreciation $ 8,400 Rent $ 2,000 Administrative expenses $ 1,300 $ 0.02 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 $6.90 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 8,400 Revenue $ 59,370 Expenses: Cleaning supplies 4,650 Electricity 1,834 Maintenance 1,900 Wages and salaries 8,580 Depreciation 8,400 Rent 2,200 Administrative expenses 1,366 Total expense 28,930 Net operating income $ 30,440 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 (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.)
I need help finding the company's revenue and spending variances.
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