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Month Fixed Cost per Cost per Car Washed Cleaning supplies $ 0.80 Electricity $ 1,400 $ 0.06 Maintenance $ 0.30 Wages and salaries $
Month Fixed Cost per Cost per Car Washed Cleaning supplies $ 0.80 Electricity $ 1,400 $ 0.06 Maintenance $ 0.30 Wages and salaries $ 4,200 $ 0.30 Depreciation $ 8,200 Rent $ 2,100 Administrative expenses $ 1,300 $ 0.02 For example, electricity costs should be $1,400 per month plus $0.06 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.50 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" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Revenue Expenses: Lavage Rapide Activity Variances For the Month Ended August 31 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income
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