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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:
\table[[,\table[[Fixed],[Cost per],[Month]],\table[[Cost per],[Car Washed]]],[Cleaning supplies,$1,300,$0.50Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the companys costs:
Fixed Cost per Month Cost per Car Washed
Cleaning supplies $ 0.50
Electricity $ 1,300 $ 0.09
Maintenance $ 0.20
Wages and salaries $ 4,500 $ 0.30
Depreciation $ 8,100
Rent $ 2,100
Administrative expenses $ 1,500 $ 0.05
For example, electricity costs should be $1,300 per month plus $0.09 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.80 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 8,100
Revenue $ 56,500
Expenses:
Cleaning supplies 4,500
Electricity 1,990
Maintenance 1,840
Wages and salaries 7,260
Depreciation 8,100
Rent 2,300
Administrative expenses 1,800
Total expense 27,790
Net operating income $ 28,710
Required:
Prepare a flexible budget performance report that shows the companys revenue and spending variances and activity variances for August.
Note: 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.
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