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:

For example, electricity costs should be $1,400 per month plus $0.06 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.60 per car washed.

The actual operating results for August are as follows:

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.

\begin{tabular}{lr} \multicolumn{2}{c}{ Lavage Rapide } \\ \multicolumn{2}{c}{ Income Statement } \\ For the Month Ended August 31 \\ Actual cars washed \\ Revenue \\ Expenses: \\ Cleaning supplies \\ Electricity & $56,300 \\ Maintenance & 4,600 \\ Wages and salaries & 1,862 \\ Depreciation & 2,290 \\ Rent & 7,940 \\ Administrative expenses & 8,200 \\ Total expense & 2,000 \\ Net operating income & 2,028 \\ \cline { 2 - 2 } \end{tabular} \begin{tabular}{lrr} & \begin{tabular}{r} Fixed Cost \\ per Month \end{tabular} & \begin{tabular}{c} Cost per \\ Car Washed \end{tabular} \\ Cleaning supplies & & $0.50 \\ Electricity & $1,400 & $0.06 \\ Maintenance & & $0.25 \\ Wages and salaries & $4,300 & $0.40 \\ Depreciation & $8,200 & \\ Rent & $1,800 & \\ Administrative expenses & $1,800 & $0.04 \end{tabular} Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 \begin{tabular}{|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ Cars washed } & \begin{tabular}{l} Actual \\ Results \end{tabular} & \begin{tabular}{c} Revenue and \\ Spending Variances \end{tabular} & \multirow[t]{2}{*}{\begin{tabular}{r} Flexible \\ Budget \end{tabular}} & Activity Variances & \multirow[t]{2}{*}{\begin{tabular}{r} Planning \\ Budget \end{tabular}} \\ \hline & 8,300 & & & & \\ \hline Revenue & 56,220 & F & & F & \\ \hline \multicolumn{6}{|l|}{ Expenses: } \\ \hline Cleaning supplies & 4,600 & U & & U & \\ \hline Electricity & 1,862 & F & & UU & \\ \hline Maintenance & 2,290 & U & & U & \\ \hline Wages and salaries & 7,940 & U & & U & \\ \hline Depreciation & 8,200 & None & & None & \\ \hline Rent & 2,000 & U & & None & \\ \hline Administrative expenses & 2,028 & F & & U & \\ \hline Total expense & 28,920 & U & & U & \\ \hline Net operating income & 27,300 & F & & F & \\ \hline \end{tabular}