Lavage Rapide is a Canadian company that owns and operates a large automatic car wash...
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Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following ble provides estimates concerning the company's costs Fixed Cost Cost per per Month Car Washed Cleaning supplies $0.70 Electricity $1,300 $0.07 Maintenance $0.10 Wages and salaries $5,000 $0.20 Depreciation $8,300 Rent $2,000 Administrative expenses $1,600 $0.03 For example, electricity costs should be $1,300 per month plus $0.07 per car washed. The company expects to wash 8.200 cartin August and to collect an average of $6.70 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 8,3ee $ 57,040 Revenue Expenses: Cleaning supplies 6.240 The actual operating results for August are as follows. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,3ee $ 57,040 res Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 6,248 1,844 1,860 7,000 8, 30e 2,268 1,746 28.390 $ 28,650 Required: Calculate the company's revenue and spending 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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