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Fixed Cost per Month

Cost per Car Washed

Cleaning supplies				$	0.40
Electricity	$	1,100		$	0.08
Maintenance				$	0.25
Wages and salaries	$	4,100		$	0.20
Depreciation	$	8,100
Rent	$	2,100
Administrative expenses	$	1,300		$	0.01

For example, electricity costs are $1,100 per month plus $0.08 per car washed. The company expects to wash 8,200 cars in October and to collect an average of $6.60 per car washed.

The actual operating results for October appear below:

Auto Lavage Income Statement For the Month Ended October 31
Actual cars washed		8,300
Revenue	$	56,220
Expenses:
Cleaning supplies		3,780
Electricity		1,726
Maintenance		2,290
Wages and salaries		6,100
Depreciation		8,100
Rent		2,300
Administrative expenses		1,282
Total expense		25,578
Net operating income	$	30,642

Required:

Compute the company's revenue and spending variances for October. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

Auto Lavage Revenue and Spending Variances For the Month Ended October 31
Revenue	$	(Click to select)FNoneU
Expenses:
Cleaning supplies		(Click to select)FUNone
Electricity		(Click to select)UFNone
Maintenance		(Click to select)NoneFU
Wages and salaries		(Click to select)UFNone
Depreciation		(Click to select)FUNone
Rent		(Click to select)NoneUF
Administrative expenses		(Click to select)NoneUF
Total expense		(Click to select)UFNone
Net operating income	$	(Click to select)FUNone

Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the companys costs:

Fixed Cost per Month

Cost per Car Washed

Cleaning supplies				$	0.70
Electricity	$	1,300		$	0.09
Maintenance				$	0.10
Wages and salaries	$	4,400		$	0.30
Depreciation	$	8,200
Rent	$	2,000
Administrative expenses	$	1,700		$	0.02

For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in October and to collect an average of $6.40 per car washed.

The actual operating results for October appear below:

Auto Lavage Income Statement For the Month Ended October 31
Actual cars washed		8,500
Revenue	$	55,860
Expenses:
Cleaning supplies		6,380
Electricity		2,026
Maintenance		1,080
Wages and salaries		7,280
Depreciation		8,200
Rent		2,200
Administrative expenses		1,768
Total expense		28,934
Net operating income	$	26,926

Required:

Compute the company's activity variances for October. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

Auto Lavage Activity Variances For the Month Ended October 31
Revenue	$	(Click to select)FNoneU
Expenses:
Cleaning supplies		(Click to select)FNoneU
Electricity		(Click to select)NoneUF
Maintenance		(Click to select)FNoneU
Wages and salaries		(Click to select)NoneUF
Depreciation		(Click to select)FUNone
Rent		(Click to select)FNoneU
Administrative expenses		(Click to select)NoneUF
Total expense		(Click to select)FUNone
Net operating income	$	(Click to select)UFNone
2.

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