Lavage Rapide is a Canadian company that owns and operates alarge automatic carwash facility near Montreal. The following tableprovides data concerning the company’s costs:
| Fixed Costs Per Month | Cost Per Car Washed |
| Cleaning Supplies | | .70 |
| Electricity | 1,100 | .09 |
| Maintenance | | .15 |
| Wages And Salary | 4,600 | .30 |
| Depreciation | 8,100 | |
| Rent | 2,000 | |
| Admin. Expense | 1,300 | .04 |
For example, electricity costs are $1,100 per month plus $0.09per car washed. The company expected to wash 8,300 cars in Augustand to collect an average of $6.50 per car washed.
The actual operating results for August appear below.
Lavage Rapide
Income Statement
For the Month Ended August 31 |
| Actual cars washed | | 8,400 |
| Revenue | $ | 56,050 |
| | |
| Expenses: | |
| Cleaning supplies | | 6,310 |
| Electricity | | 1,817 |
| Maintenance | | 1,485 |
| Wages and salaries | | 7,450 |
| Depreciation | | 8,100 |
| Rent | | 2,200 |
| Administrativeexpenses | | 1,532 |
| | |
| Total expense | | 28,894 |
| | |
| Net operating income | $ | 27,156 |
| | |
|
Compute the company's revenue and spending variances for August.(Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance). Input all amounts as positive values.)
