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

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Accounting

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 companys costs:

Fixed Cost per Month Cost per Car Washed

Cleaning supplies $ 0.70

Electricity $ 1,100 $ 0.08

Maintenance $ 0.25

Wages and salaries $ 4,200 $ 0.30

Depreciation $ 8,400

Rent $ 2,100

Administrative expenses $ 1,500 $ 0.01

For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.90 per car washed. The company actually washed 8,600 cars in August.

	Fixed Cost per Month	Cost per Car Washed
Cleaning supplies		$ 0.70
Electricity	$ 1,100	$ 0.08
Maintenance		$ 0.25
Wages and salaries	$ 4,200	$ 0.30
Depreciation	$ 8,400
Rent	$ 2,100
Administrative expenses	$ 1,500	$ 0.01

Required:

Calculate the company's activity variances for August.

Note: 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.

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