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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 companys costs:

Fixed Cost per Month Cost per Car Washed
Cleaning supplies $ 0.50
Electricity $ 1,000 $ 0.09
Maintenance $ 0.20
Wages and salaries $ 4,200 $ 0.30
Depreciation $ 8,200
Rent $ 2,100
Administrative expenses $ 1,400 $ 0.01

For example, electricity costs are $1,000 per month plus $0.09 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.10 per car washed.

The actual operating results for August are as follows:

Lavage Rapide
Income Statement
For the Month Ended August 31
Actual cars washed 8,100
Revenue $ 50,900
Expenses:
Cleaning supplies 4,500
Electricity 1,690
Maintenance 1,840
Wages and salaries 6,960
Depreciation 8,200
Rent 2,300
Administrative expenses 1,380
Total expense 26,870
Net operating income $ 24,030

Required:

Prepare a flexible budget performance report that shows the companys revenue and spending variances and 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.)

Noreen_5e_Rechecks_2019_10_17

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