Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montre. The following table provides estimates concerning the company's costs: Fixed Cost per cost per Mont Cleaning supplies Car Washed Electricity $ 0.50 $1,500 $0.9 Maintenance 5.0.20 Wages and salaries $ 4,200 0.20 Depreciation 5 8,100 Rent 52,100 Administrative expenses $ 1.400 $ 0.00 For example, electricity costs should be $1,500 per month plus $0.09 per car washed. The company expects to wash 8100 cars in August and to collect an average of 56.40 per car washed The actual operating results for August are as follows: Lavage Rapide Incode Statement For the Month Ended August 31 Actual cars washed 8,200 Revenue 5.53.940 Expenses: Cleaning Supplies 4,550 Electricity 2,199 Maintenance 1,860 Wages and salaries 6,180 Depreciation 8,100 Rent 2,300 Administrative expenses 1.543 Total expense 26,732 $ 27,200 Net operating Incone Required: Calculate the company's revenue and spending variances for August. (indicate the effect of each variance by selecting "F" for nance Inoutall amounts as positive values Required: Calculate the company's revenue and spending variances for August, (Indicate the effect of each variance by selecting "p" for favorable, "U" for unfavorable, and "None" for no effect (e., zero variance), Input all amounts as positive values.) Lavage Rapide Revenue and Spending Varances For the Month Ended August 31 Revenue Expenses Cleaning supplies Electricity Maintenance Wages and stron Depreciation Rent Administrative expenses Total expense Net operating income 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 company's costs: 5 Fixed Cost per Cost per Month Cleaning supplies Car Washed Electricity $ 0.50 $ 1,500 Maintenance $ 0.09 $ 0.20 Wages and salaries $ 4,200 $ 0.20 Depreciation $ 8,100 Rent $ 2, 180 Administrative expenses $ 1,400 $ 0.03 For example, electricity costs should be $1.500 per month plus $0.09 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.40 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 8,200 Revenue $ 53,940 Expenses: Cleaning supplies 4,550 Electricity 2,199 Maintenance 1,860 Wages and salaries 6,180 Depreciation 8, 100 Rent 2,300 Administrative expenses 1,543 Total expense 26,732 Net operating income $ 27, 288
