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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 Cost per Car Washed S 0.80 S 0.06 S 0.25 per Manth Cleaning supples Eleclricily Malmenance Wages and salarics Depreciat en Rent S1,200 S5,000 S8,10D 1,800 $1,500 S 0.20 S 0.02 For example, electricity costs are1,200 per mont plus $0.06 per car washed. The company expected to wash 8,400 cars n August and o colect an average of $6.10 per car washed. The company actually washed 8 500 cars. The actual operating results for August appear below. Lavage Rapids Inicume Slalement For the Month Ended August 31 chial cars washod Revenuc ,500 5 53,810 Expenses: Cleaning supplies Ek:ctriily Maintenance ,220 1,674 2,310 ,040 Wages and salaries 2,000 1,580 Rent Admnleratve expenees 29,942 Tatal expense Net oierating inccrx: S 23,388 Required Compute the company's activity variances for August. (Indicate the effact 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.) Rapide Activity Varlances For the Month Ended August 31 Rowgrun Expense3: Cleaning supplies Electicity Wig ar salrie Rent TotEl expense Net operatng income
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