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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 Revenue Expenses: Fixed Cost Cost per per Month Car Washed $ 0.70 $ 0.09 $ 0.10 $0.30 For example, electricity costs should be $1,000 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.70 per car washed. The company actually washed 8,500 cars in August. Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent $1,000 Required: Calculate the company's activity varlances 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. $ 4,900 $ 8,300 $ 2,200 $ 1,600 Administrative expenses Total expenses Net operating income Lavage Rapide Activity Variances For the Month Ended August 31 $ 0.05
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