Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility...

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Accounting

Lavage Rapide is a Canadian company that owns and operates alarge automatic car wash facility near Montreal. The followingtable provides data concerning the company’s costs:
Fixed Cost
per Month Cost per
Car Washed
Cleaning supplies $ 0.70
Electricity $ 1,400 $ 0.06
Maintenance $ 0.25
Wages and salaries $ 4,500 $ 0.40
Depreciation $ 8,400
Rent $ 2,000
Administrative expenses $ 1,800 $ 0.04
For example, electricity costs are $1,400 per month plus $0.06per car washed. The company expects to wash 8,200 cars in Augustand to collect an average of $6.10 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 8,300
Revenue $ 52,120
Expenses:
Cleaning supplies 6,240
Electricity 1,862
Maintenance 2,290
Wages and salaries 8,140
Depreciation 8,400
Rent 2,200
Administrative expenses 2,028
Total expense 31,160
Net operating income $ 20,960
Required:
Calculate the company's revenue and spending variances forAugust. (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 positivevalues.)

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Lavage Rapide Flexible Budget performance report For the month ended August 31 Actual Revenue and Spending Variance Flexible Budget Activity Variance See Answer

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	Fixed Cost per Month		Cost per Car Washed
Cleaning supplies			$	0.70
Electricity	$	1,400	$	0.06
Maintenance			$	0.25
Wages and salaries	$	4,500	$	0.40
Depreciation	$	8,400
Rent	$	2,000
Administrative expenses	$	1,800	$	0.04

Lavage Rapide
Income Statement
For the Month Ended August 31
Actual cars washed		8,300

Revenue	$	52,120
Expenses:
Cleaning supplies		6,240
Electricity		1,862
Maintenance		2,290
Wages and salaries		8,140
Depreciation		8,400
Rent		2,200
Administrative expenses		2,028
Total expense		31,160
Net operating income	$	20,960