I figured out the Favorable/Unfavorable by process of elimination. Can\'t seem t

Question

I figured out the Favorable/Unfavorable by process of elimination. Can't seem to get the second part, though.

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's costs Cost per Car Washed 0.70 0.07 $0.10 $0.30 Fixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,400 $4,500 $8,300 $2,100 $1,600 0.03 For example, electricity costs are $1,400 per month plus $0.07 per car washed. The company expects to wash 8,400 cars in August and 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 Expenses 8,500 $60,060 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 6,380 1,958 1,080 7,380 8,300 2,300 1,752 Total expense Net operating income $30,910

Explanation / Answer

Actual Revenue and spending variances Flexible budget Activity variances Planning budget Revenue 60060 1410 F 58650 690 F 57960 Expenses: Cleaning supplies 6380 430 U 5950 70 U 5880 Electricity 1958 37 F 1995 7 U 1988 maintenance 1080 230 U 850 10 U 840 Wages and salaries 7380 330 U 7050 30 U 7020 Depreciation 8300 0 None 8300 0 None 8300 Rent 2300 200 U 2100 0 None 2100 Administrative expenses 1752 103 F 1855 3 U 1852 Total expenses 29150 1050 U 28100 120 U 27980 Net operating income 30910 360 F 30550 570 F 29980

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