Lavage Rapide is a Canadian company that owns and operates a large automatic car

Question

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data conceming the company's costs: Fixed per Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses s 0.50 $ 0.10 0.25 $ 0.20 $ 1,200 4,100 $ 8,100 2,000 1,300 $ 0.03 For example, electricity costs are $1,200 per month plus $0.10 per car washed. The company actually washed 8,000 cars in August. The company expected to collect an average of $6.90 per car washed. The actual operating results for August appear below Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue 8,000 $ 55,145 Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent 4,520 140 2,540 6,640 8,100 2,000 1,615 Administrative expenses Total expense 27,555 Net operating income s 27.590 Required Prepare a report showing the company's revenue and spending variances for August findicate the effect of each variance by selecting "F for faverable, "U" for unfavorablo, and "None" for no effect fi.e. zero variance). Input all amounts as positive values.) MacBook A

Explanation / Answer

Actual Revenue and spending variances Flexible budget Cars washed 8000 8000 Revenue 55145 55 U 55200 Expenses: Cleaning supplies 4520 520 U 4000 Electricity 2140 140 U 2000 Maintenance 2540 540 U 2000 Wages and salaries 6640 940 U 5700 Depreciation 8100 0 None 8100 Rent 2000 0 None 2000 Administrative expenses 1615 75 U 1540 Total expenses 27555 2215 U 25340 Net operating income 27590 2270 U 29860

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