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Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's
Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost per Month $1,300 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $ 0.60 $ 0.07 $ 0.20 $ 0.30 $4,600 $8,400 $1,900 $1,600 $ 0.03 For example, electricity costs are $1,300 per month plus $0.07 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 appear below. Revenue Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,100 $56,500 Expenses: Cleaning supplies 5,300 Electricity 1,830 Maintenance 1,840 Wages and salaries 7,360 Depreciation 8,400 Rent 2.100 Administrative expenses 1,740 Total expense 28.570 Net operating income $27,930 Required: Complete the flexible budget performance report that shows the company's activity variances and 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.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Revenue and Spending Variances Activity Variances Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 0 200
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