Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company$$s costs:

Fixed Cost per Month Cost per Car Washed

Cleaning supplies $ $0\mathrm{.}70$

Electricity $ $1,300$ $ $0\mathrm{.}05$

Maintenance $ $0\mathrm{.}15$

Wages and salaries $ $4,300$ $ $0\mathrm{.}40$

Depreciation $ $8,400$

Rent $ $2,200$

Administrative expenses $ $1,400$ $ $0\mathrm{.}04$

For example, electricity costs should be $$1,300$ per month plus $$0\mathrm{.}05$ per car washed. The company expects to wash $8,400$ cars in August and to collect an average of $$6\mathrm{.}50$ 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 $ $56,700$

Expenses:

Cleaning supplies $6,380$

Electricity $1,690$

Maintenance $1,500$

Wages and salaries $8,020$

Depreciation $8,400$

Rent $2,400$

Administrative expenses $1,636$

Total expenses $30,026$

Net operating income $ $26,674$

Required:

Calculate the company's revenue and spending 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.

Required:

$5$

Calculate the company's revenue and spending variances for August.

points

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.

eBook

References

$\backslash$table$[[$Lavage Rapide$],[$Revenue and Spending Variances,$],[$For the Month Ended August $31],[$Revenue$,,],[$Expenses:$,,],[$Cleaning supplies,,$],[$Electricity$,,],[$Maintenance$,,],[$Wages and salaries,,$],[$Depreciation$,,],[$Rent$,,],[$Administrative expenses,,$],[$Total expenses,,$],[$Net operating income,,$]]$