Required:

Calculate the company's revenue and spending 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.$)$ 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 Cost per

Car Washed

Cleaning supplies $ $0\mathrm{.}50$

Electricity $ $1,000$ $ $0\mathrm{.}05$

Maintenance $ $0\mathrm{.}20$

Wages and salaries $ $4,600$ $ $0\mathrm{.}30$

Depreciation $ $8,400$

Rent $ $2,200$

Administrative expenses $ $1,600$ $ $0\mathrm{.}02$

For example, electricity costs are $$1,000$ per month plus $$0\mathrm{.}05$ per car washed. The company expects to wash $8,500$ cars in August and to collect an average of $$6\mathrm{.}10$ 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 $8,600$

Revenue $ $53,950$

Expenses:

Cleaning supplies $4,750$

Electricity $1,395$

Maintenance $1,940$

Wages and salaries $7,510$

Depreciation $8,400$

Rent $2,400$

Administrative expenses $1,670$

Total expense $28,065$

Net operating income $ $25,885$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:

For example, electricity costs are $$1,000$ per month plus $$0\mathrm{.}05$ per car washed. The company expects to wash $8,500$ cars in August

and to collect an average of $$6\mathrm{.}10$ per car washed.

The actual operating results for August are as follows: