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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 data concerning the
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs Fixed Cost Cost per per Month Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses %0.70 %0.08 $0.25 $0.20 $1,400 $4,400 $8,000 $1,900 $1,500 $0.05 For example, electricity costs are $1,400 per month plus $0.08 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.30 per car washed. The company actually washed 8,400 cars in August. Required Calculate the company's activity variances for August. (Indicate the effect of each variance by selecting "FI" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as posltive values.) Lavage Rapide Activity Variances For the Month Ended August 31 Revenue Cleaning supplies Electrioity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income
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