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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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Revenue Expenses: Fixed Cost per Month $ 1,200 For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. The company actually washed 8,800 cars in August. Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent $ 5,000 $ 6,000 $ 8,000 $ 4,000 Required: Calculate the company's 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.) Lavage Rapide Activity Variances For the Month Ended August 31 Administrative expenses Total expense Net operating income Cost per Car Washed $0.80 $0.15 $ 0.20 $ 0.30 $ 0.10
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Lavoge Ropide is a Canodion compony that owns and operates a large automatic car wash facility near Montreal The following table provides estimates concerning the company's costs For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $490 per car washed. The company actually washed 8,800 cars in August: Required: Calculate the company's 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.)

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