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 $ 0.80 Electricity $ 1,100 $ 0.05 Maintenance $ 0.15 Wages and salaries $ 4,200 $ 0.30 Depreciation $ 8,100 Rent $ 1,900 Administrative expenses $ 1,400 $ 0.04 For example, electricity costs are $1,100 per month plus $0.05 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.50 per car washed. Required: Prepare the company's planning budget for August. Lavage Rapido Planning Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 0 0 provides data concerning the company's costs: Fixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $ 0.60 $ 0.06 $ 0.20 $ 0.30 $ 1,300 $ 4,900 $ 8,300 $ 1,900 $ 1,700 $ 0.03 For example, electricity costs are $1,300 per month plus $0.06 per car washed. The company actually washed 8,400 cars in August and collected an average of $6.30 per car washed, Required: Prepare the company's flexible budget for August Lavage Rapido Flexible Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense 0 Nel operating Income $ 0 Exercise 9-10 (Algo) Direct Labor and Variable Manufacturing Overhead Variances (LO9-5, LO9-6] Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to controf its costs. The labor standards that have been set for one Jogging Mate are as follows: Standard Rate Standard Standard Hours 24 minutes $6.00 $2.40 per Hour Cost During August, 8,670 hours of direct labor time were needed to make 19,700 units of the Jogging Mate. The direct labor cost totaled $50,286 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 19,700 Jogging Mates? 2. What is the standard labor cost allowed (SH SR) to make 19,700 Jogging Mates? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $4.50 per direct labor-hour. During August, the company incurred $43,350 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. (For requirements 3 through 5, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie, zero variance). Input all amounts as positive values. Do not round Intermediate calculations.) 1. Standard labor-hours allowed 2. Standard labor cost allowed 3. Labor spending variance 4. Laborrate variance 4.Labor efficiency variance 5. Variable overhead rate variance 5. Variable overhead efficiency variance