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Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the companys costs: Fixed Cost per
Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the companys costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.60 Electricity $ 1,400 $ 0.05 Maintenance $ 0.30 Wages and salaries $ 4,400 $ 0.30 Depreciation $ 8,300 Rent $ 2,200 Administrative expenses $ 1,600 $ 0.01 For example, electricity costs should be $1,400 per month plus $0.05 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.70 per car washed. The company actually washed 8,400 cars in August. Required: Calculate the company's activity variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U
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