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 companys costs:

	Fixed Cost per Month			Cost per Car Washed
Cleaning supplies				$	0.40
Electricity	$	1,400		$	0.06
Maintenance				$	0.15
Wages and salaries	$	4,900		$	0.30
Depreciation	$	8,500
Rent	$	2,000
Administrative expenses	$	1,800		$	0.01

For example, electricity costs should be $1,400 per month plus $0.06 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		8,500
Revenue	$	60,060
Expenses:
Cleaning supplies		3,860
Electricity		1,874
Maintenance		1,500
Wages and salaries		7,780
Depreciation		8,500
Rent		2,200
Administrative expenses		1,784
Total expense		27,498
Net operating income	$	32,562

Required:

Prepare a flexible budget performance report that shows the companys 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.)

Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Flexible Results Budget Planning Budget Cars washed 8,500 Revenue $ 60,060 3,860 1,874 1,500 Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 7,780 8,500 2,200 1,784 27,498 32,562 $