Question
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the companys costs:
Fixed Cost per Month | Cost per Car Washed | ||
---|---|---|---|
Cleaning supplies | $ 0.50 | ||
Electricity | $ 1,400 | $ 0.10 | |
Maintenance | $ 0.15 | ||
Wages and salaries | $ 4,100 | $ 0.40 | |
Depreciation | $ 8,100 | ||
Rent | $ 2,000 | ||
Administrative expenses | $ 1,400 | $ 0.02 |
For example, electricity costs should be $1,400 per month plus $0.10 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.90 per car washed. The company actually washed 8,200 cars in August.
Required:
Calculate the company's activity variances for August.
Note: 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.
Required: Calculate the company's activity variances for August. Note: Indicate the effect of each variance by selecting "F" fo variance). Input all amounts as positive values
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