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 Cost Per Month | Cost Per Car Washed |
| Cleaning Supplies | | .40 |
| Electricity | 1,100 | .07 |
| Maintenance | | .15 |
| Wages And Salary | 4,700 | .30 |
| Depreciation | 8,300 | |
| Rent | 2,000 | |
| Admin Exp. | 1,600 | .05 |
For example, electricity costs are $1,100 per month plus $0.07per car washed. The company expected to wash 8,200 cars in Augustand to collect an average of $6.60 per car washed. The companyactually washed 8,300 cars.
The actual operating results for August appear below.
Lavage Rapide
Income Statement
For the Month Ended August 31 |
| Actual cars washed | | 8,300 |
| Revenue | $ | 56,220 |
| Expenses: | |
| Cleaning supplies | | 3,780 |
| Electricity | | 1,644 |
| Maintenance | | 1,470 |
| Wages and salaries | | 7,520 |
| Depreciation | | 8,300 |
| Rent | | 2,200 |
| Administrative expenses | | 1,910 |
| Total expense | | 26,824 |
| Net operating income | $ | 29,396 |
|
Compute the company's activity 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.)
