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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 $ 0.80 Electricity $ 1,400 $ 0.08 Maintenance $ 0.10 Wages and salaries $ 4,100 $ 0.30 Depreciation $ 8,100 Rent $ 2,100 Administrative expenses $ 1,700 $ 0.01 For example, electricity costs are $1,400 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.90 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 8,100 Revenue $ 57,300 Expenses: Cleaning supplies 6,900 Electricity 2,010 Maintenance 1,040 Wages and salaries 6,860 Depreciation 8,100 Rent 2,300 Administrative expenses 1,680 Total expense 28,890 Net operating income $ 28,410

Prepare a flexible budget performance report that shows the companys revenue and spending variances and activity variances for August. (

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