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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 | $ | 0.80 | |||||
Electricity | $ | 1,100 | $ | 0.10 | |||
Maintenance | $ | 0.10 | |||||
Wages and salaries | $ | 4,500 | $ | 0.30 | |||
Depreciation | $ | 8,500 | |||||
Rent | $ | 2,100 | |||||
Administrative expenses | $ | 1,300 | $ | 0.04 | |||
For example, electricity costs are $1,100 per month plus $0.10 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $5.90 per car washed. The company actually washed 8,200 cars in August.
Required:
Calculate the company's activity variances for August.
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