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 MonthCost per Car Washed

Cleaning supplies $ 0.50

Electricity$ 1,300$ 0.05

Maintenance $ 0.25

Wages and salaries$ 5,000$ 0.20

Depreciation$ 8,000

Rent$ 2,100

Administrative expenses$ 1,400$ 0.05

For example, electricity costs should be $1,300 per month plus $0.05 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.40 per car washed.

The actual operating results for August are as follows:

Lavage Rapide

Income Statement

For the Month Ended August 31

Actual cars washed8,400

Revenue$ 55,220

Expenses:

Cleaning supplies4,650

Electricity1,685

Maintenance2,315

Wages and salaries7,020

Depreciation8,000

Rent2,300

Administrative expenses1,715

Total expense27,685

Net operating income$ 27,535

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.