Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the companys costs:

Fixed Cost per Month

Cost per Car Washed

Cleaning supplies				$	0.60
Electricity	$	1,500		$	0.05
Maintenance				$	0.10
Wages and salaries	$	4,300		$	0.20
Depreciation	$	8,400
Rent	$	2,000
Administrative expenses	$	1,400		$	0.05

For example, electricity costs are $1,500 per month plus $0.05 per car washed. The company expected to wash 8,400 cars in August and to collect an average of $6.70 per car washed.

The actual operating results for August appear below.

Lavage Rapide Income Statement For the Month Ended August 31
Actual cars washed		8,500
Revenue	$	58,380
Expenses:
Cleaning supplies		5,540
Electricity		1,890
Maintenance		1,080
Wages and salaries		6,340
Depreciation		8,400
Rent		2,200
Administrative expenses		1,720
Total expense		27,170
Net operating income	$	31,210

Required:

Compute the company's revenue and spending 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.)

2.

Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management has identified two cost driversthe number of cruises and the number of passengersthat it uses in its budgeting and performance reports. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 81 passengers can be accommodated on the tour boat. Data concerning the companys cost formulas appear below:

	Fixed Cost Per Month		Cost per Cruise		Cost per Passenger
Vessel operating costs	$	6,600	$	476.00	$	3.10
Advertising	$	2,200
Administrative costs	$	5,900	$	39.00	$	1.50
Insurance	$	3,600

For example, vessel operating costs should be $6,600 per month plus $476.00 per cruise plus $3.10 per passenger. The companys sales should average $33.00 per passenger. The companys planning budget for July is based on 52 cruises and 3,050 passengers.

Required:

Complete the companys planning budget for July.

Lavage Rapide
Revenue and Spending 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

Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the companys operations in July appear below:

Vulcan Flyovers Operating Data For the Month Ended July 31
	Actual Results		Flexible Budget		Planning Budget
Flights (q)		61		61		59
Revenue ($355.00q)	$	16,200	$	21,655	$	20,945
Expenses:
Wages and salaries ($3,100 + $91.00q)		8,609		8,651		8,469
Fuel ($34.00q)		2,236		2,074		2,006
Airport fees ($830 + $33.00q)		2,723		2,843		2,777
Aircraft depreciation ($10.00q)		610		610		590
Office expenses ($250 + $1.00q)		479		311		309
Total expense		14,657		14,489		14,151
Net operating income	$	1,543	$	7,166	$	6,794

The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount.

Required:

3.

Complete the flexible budget performance report abstract for July. (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.)

Vulcan Flyovers
Flexible Budget Performance Report
For the Month Ended July 31
	Revenue and Spending Variances		Activity Variances
Revenue
Expenses:
Wages and salaries
Fuel
Airport fees
Aircraft depreciation
Office expenses
Total expense
Net operating income