Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the companys costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.50 Electricity $ 1,300 $ 0.06 Maintenance $ 0.20 Wages and salaries $ 4,400 $ 0.40 Depreciation $ 8,200 Rent $ 2,200 Administrative expenses $ 1,400 $ 0.03 ________________________________________

For example, electricity costs are $1,300 per month plus $0.06 per car washed. The company expected to wash 8,300 cars in August and to collect an average of $6.20 per car washed. The company actually washed 8,400 cars in August. Required: Compute the company's 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 Rapide Activity Variances For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income

LAVAGE RAPIDE

ACTIVITY VARIANCES

FOR THE MONTH ENDED AUGUST 31

Revenue:

expenses:

cleaning supplies:

electricity:

maintenance:

wages and salaries:

depreciation:

rent:

administrative expenses:

Total expense:

Net operating income