Question 2

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: For example, electricity costs should be $1,400 per month plus $0.07 per car washed. The company actually washed 8,300 cars in August and collected an average of $6.20 per car washed. Required: Prepare the company's flexible budget for August. Flight Caf prepares in-flight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July appears below: In July, 22,000 meals were actually served. The company's flexible budget for this level of activity appears below: Required: 1. Calculate the company's activity variances for July. (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.)