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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

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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 company's costs: Fixed Cost per Month Cost per Car Washed $0.80 $0.15 $0.20 $0.30 $1,200 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses bok int $5,000 $6,000 $3,000 $4,000 $0.10 ences 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 actual operating results for August are as follows: Lavago Rapido Income Statement For the Month Ended August 31 Actual cars washed 8.800 Revende $43,080 Expendent Cleaning supplies 7.560 Electricity 2,670 Maintenance 2,260 Wages and salaries 8,500 Depreciation 6,000 Rent 9,000 Administrative expenses 4,950 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 actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8.800 Revenue $ 43,000 Expenses: Cleaning supplies 7,560 Electricity 2,670 Maintenance 2,260 Wages and salaries 8.500 Depreciation Rent 8,000 Administrative expenses 4,950 Total expense 39,940 Net operating income $ 3,140 6,000 Required: Prepare a flexible budget performance report that shows the company's 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 (1.e., zero variance). Input all amounts as positive values.) Lavage Rapide Floxible Budget Performance Report For the Month Ended August 31 Required: Prepare a flexible budget performance report that shows the company's 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 Rapido Flexible Budget Porformance Report For the Month Ended August 31 Flexible Budget Actual Results 8,800 Planning Budget Cars washed Revenue $ 43,080 7,560 2,670 2,260 Expenses: Cleaning supplies Electricity Maintenance Wages and salarios Depreciation Rent Administrative expenses Total expenso Not operating income 8,500 6,000 8,000 4,950 39,940 3,140 $

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