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 Fixed Cost Cost per per Month Car Washed Cleaning Supplies $ 0.50 Electricity $ 1,100 30.05 Maintenance 0.25 Wages and salaries $4,400 10.20 Depreciation $3,400 Rent $1,900 Adeinistrative expenses $1,300 For example, electricity costs should be $1100 per month plus $0.05 per car washed. The company expects to wash 8.400 cars in August and to collect an average of 56.90 per car washed The actual operating results for August are as follows Lavage Rapide Income Statement For the Month Ended upust 31 Actual cars washed 3,500 Revue 5. Expenses Cleaning Supplies 4,70 Electricity 1, as Maintenance 2,30 wages and salaries Depreciation 3,400 Hent Administrative expenses Total pente Net operating Income 5 33,33 2,100 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 le, zero variance). Input all amounts as positive values.) Lavage Rapide Fler Butlet Performance Report For the Month Ended Augusta Revenue and Actual Spending Fire Results Variances Budget 1.500 3 60.000 ang Budget Cars washed Revenue Expenses Cleaning supplies Electro Mainance Wages and salaries Deprecation Rent Admite expenses Total Net operating income 4.700 1.490 2.340 0.40 8.400 2100 145 28.002 5 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: Fixed Cost Cost per per Month Car Washed Cleaning supplies $8.50 Electricity 5 1.100 $ 0.05 Maintenance $ 8.25 vages and salaries $ 4,400 $ 0.20 Depreciation $ 3,400 Rent $1,500 Adeznistrative expenses 51, 5 0.03 For example, electricity costs should be $1,100 per month plus $0.05 per car washed. The company expects to wash 8,400 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 3,500 Revenue .. Expenses: Cleaning Supplies 4,700 Electricity 1.49 Maintenance 2,340 Wapes and salaries Depreciation 8,460 Rent 2,100 Administrative expenses Total expense 26,922 Het operating income $ 33,238 6,640 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 "P" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero verlance). Input all amounts os positive values.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August Actual Revenue and Flexible Results Spending Variances Budget 8.500 3 00.000 Planning Budget Cars washed Revue Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation 4.700 1.490 2.340 6.440 3.400 2.100 Part 1.452 Administrative expenses Total expense Net operating income 20.922 3.138 5
