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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 $ 0.80
Electricity $ 1,200 $ 0.08
Maintenance $ 0.10
Wages and salaries $ 4,500 $ 0.40
Depreciation $ 8,400
Rent $ 2,100
Administrative expenses $ 1,500 $ 0.03

For example, electricity costs should be $1,200 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.30 per car washed.

The actual operating results for August are as follows:

Lavage Rapide
Income Statement
For the Month Ended August 31
Actual cars washed 8,500
Revenue $ 55,020
Expenses:
Cleaning supplies 7,220
Electricity 1,842
Maintenance 1,080
Wages and salaries 8,220
Depreciation 8,400
Rent 2,300
Administrative expenses 1,652
Total expenses 30,714
Net operating income $ 24,306

Required:

Prepare a flexible budget performance report 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.

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