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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 per Month Car Washed Cleaning supplies 0.70 1,100 Electricity 0.09 Maintenance 0.30 4,500 Wages and salaries 0.20 8,200 Depreciation Rent 1,900 0.04 Administrative expenses 1,500 For example, electricity costs are $1,100 per month plus $0.09 per car washed. The company expected to wash 8,500 cars in August and to collect an average of $6.50 per car washed. The company actually washed 8,600 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
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