Q1

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.50 $0.05 $0.25 $0.30 $1,300 $4,900 $8,400 $2,200 $1,500 $0.01 For example, electricity costs are $1,300 per month plus $0.05 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.80 per car washed. The actual operating results for August appear below Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,200 Revenue $57,180 Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 4,550 1,675 2,265 7,690 8,400 2,400 1,481 28,461 $28,719 Total expense Net operating income Required Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. (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.) Answer is not complete vage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Results Flexible Budget 8,300 Planning Budget Cars washed 8,200 Revenue 57,180 $ 56,440 x $56,440 X F $740 Expenses: Cleaning supplies Electricity Maintenance Wages and salaries 4,550 1,675 2,265 7,690 8,400 2,400 2,200U 1,481 1,5003 F81,583 F 102 4,150 415 2,075 2,490 4,150 x U 1,715 x F 2,075 x U 7,390 x U 8,400 x None 2.200 U200 400 40 190 300 1,300 xF 4,900 x U 8,400 x None Rent Administrative expenses 28,461 27,513 U948 Total expense Net operating income 28,719 28,927 XF