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: For example, electricity costs should be $1,100 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.50 per car washed.

The actual operating results for August are as follows:

Required:

Prepare a flexible budget performance report that shows the companys revenue and spending variances and activity variances for August.

MonthCleaningsuppliesElectricityMaintenanceWagesandsalariesDepreciationRentAdministrativeexpensesFixedCostperCarWashed$1,100$4,600$8,400$1,900$1,800$0.20Costper$0.50$0.09$0.20$0.04