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				$	0.50
Electricity	$	1,300		$	0.07
Maintenance				$	0.15
Wages and salaries	$	4,000		$	0.20
Depreciation	$	8,100
Rent	$	1,900
Administrative expenses	$	1,400		$	0.02

For example, electricity costs are $1,300 per month plus $0.07per car washed. The company expects to wash 8,500 cars in Augustand to collect an average of $6.40 per car washed.

The actual operating results for August appear below.

Lavage Rapide
Income Statement
For the Month Ended August 31
Actual cars washed		8,600
Revenue	$	56,500
Expenses:
Cleaning supplies		4,750
Electricity		1,865
Maintenance		1,515
Wages and salaries		6,060
Depreciation		8,100
Rent		2,100
Administrative expenses		1,470
Total expense		25,860
Net operating income	$	30,640

Required:

Prepare a flexible budget performance report that shows thecompany’s revenue and spending variances and activity 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.)

Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Results Revenue and Spending Variances Flexible Budget Activity Variances Planning Budget Cars washed 8,600 8,600 Revenue $56,500 Expenses: Cleaning supplies 4,750 Electricity 1,865 Maintenance 1,515 Wages and salaries 6,060 Depreciation 8,100 Rent 2,100 Administrative expenses 1,470 Total expense 25,860 Net operating income $30,640