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/month	cost per car washed
cleaning supplies		$0.60
electricity	$1300	$0.10
maintence		$0.15
wages/salaries	$4500	$0.30
depreciation	$8200
rent	$1800
Admin. expenses	$1600	$0.03

For example, electricity costs are $1,300 per month plus $0.10 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.80 per car washed.

The actual operating results for August appear below.

Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,300 Revenue $ 57,860 Expenses: Cleaning supplies 5,420 Electricity 2,090 Maintenance 1,470 Wages and salaries 7,320 Depreciation 8,200 Rent 2,000 Administrative expenses 1,746 Total expense 28,246 Net operating income $ 29,614

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.)

2. 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/month	cost per car washed
cleaning supplies		$0.70
electricity	$1100	$0.08
maintence		$0.25
wages/salaries	$4800	$0.30
depreciation	$8300
rent	$2000
Admin. expenses	$1400	$0.04

For example, electricity costs are $1,100 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.40 per car washed.

The actual operating results for August appear below.

Lavage Rapide

Income Statement

For the Month Ended August 31

Actual cars washed 8,100

Revenue $53,300

Expenses:

Cleaning supplies 6,100

Electricity 1,710

Maintenance 2,240

Wages and salaries 7,560

Depreciation 8,300

Rent 2,200

Administrative expenses 1,620

Total expense 29,730

Net operating income $23,570

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.)