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Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity
Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Fixed Cost per Month Revenue Expenses: $ 1,400 $ 4,400 $ 8,000 $ 2,000 $ 1,300 Cleaning supplies Electricity Maintenance Wages and salaries Cost per Car Washed For example, electricity costs should be $1,400 per month plus $0.09 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.30 per car washed. The company actually washed 8,200 cars in August. Lavage Rapide Activity Variances For the Month Ended August 31 $ 0.60 $ 0.09 $ 0.20 $ 0.20 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. $ 0.04
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