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 data concerning the companys costs:
| Fixed Cost per Month | Cost per Car Washed | ||||||
| Cleaning supplies | $ | 0.40 | |||||
| Electricity | $ | 1,500 | $ | 0.06 | |||
| Maintenance | $ | 0.30 | |||||
| Wages and salaries | $ | 4,700 | $ | 0.30 | |||
| Depreciation | $ | 8,500 | |||||
| Rent | $ | 2,200 | |||||
| Administrative expenses | $ | 1,800 | $ | 0.04 | |||
For example, electricity costs are $1,500 per month plus $0.06 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.20 per car washed. The company actually washed 8,500 cars in August.
Required:
Calculate the company's activity 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.)
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