Lavage Rapide is a Canadian company that owns and data conceming the company\'s

Question

Lavage Rapide is a Canadian company that owns and data conceming the company's costs a large automatic carwash facility near Montreal. The following table provides S 0.80 S 0.08 3 0.30 3 0.40 Electricty 5 1,400 Depreciation Rent $ 4.500 $8,100 $ 2.100 1.800 S 004 For example, electricity costs are $1,400 per month plus $0.08 per car washed. The company expected to wash 8,000 cars in August and to collect an average of 50.50 per car washed The actual operating results for August appear below Income Statement Actual cars Revenue 8.100 $ 54,100 Cleaning supplies 8.900 1.850 8.100 8.100 Wages and salaries Rent Administrative expenses Total experse 31,970 Net operaning incoma 5 22,130 Required: Compute the company's revanue and spending vanarces for August Indicate the eflect of each variance by selecting for favorable U"for unfavorable. and "Nona" for no effect ie, zero variance all amounts as positive values Revenue and Spending Variances For the Month Ended August 31 Expenses 0 Type here to search

Explanation / Answer

Standard Actual Spending Variance Revenue 52650 54100 1450 Fav Lless: Expense Cleaning supplies 6480 6900 420 Unfav Electricity 1886 1850 36 Fav maintenance 2430 2640 210 Unfav Wages and salaries 7840 8160 320 Unfav Depreciation 8100 8100 0 Rent 2100 2300 200 Unfav Admin expense 2124 2020 104 Fav Total expense 30960 31970 1010 Unfav Net Operating income 21690 22130 440 Fav

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