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

Question

Lavage Rapise is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The tollowing tabile provides data concerning the company's costs Fixed Cost Cost per per Mont Car Washed Cleaning supplies Electncity Maintenance Wages and salaries s 0.50 s 0.06 s 0 20 3 0.30 $1,100 34,400 58.300 $1,900 $1,000 Administrative expenses $ 0.02 to collect an average of $6.10 per car washed. The company actually washed 8200 cars The actual operating results for August appear below Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue 8,200 S $1.510 Cleaning supplies 4,550 1,556 1,860 7,190 8,300 2,100 Electricity Maintenance Wages and salaries Rent Administrative expenses Total expense Net operating income 27 218 $ 24,292 Required: Compute the company's activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie., zero variance). Input all amounts as positive values.) Lavage Rapide Activity Variances For the Month Ended August 31 Revenue Cleaning supplies Maintenance Wages and salaries Depreciation Rent Total expense Net operating income

Explanation / Answer

Activity Variance for the month ended August 31. Revenues 610 Fav Expenses Cleaning supplies 50 Unfav Electricity 6 Unfav Maintenance 20 Unfav Wages and Salaries 30 Unfav Depreciation 0 None Rent 0 None Admin expennse 2 Unfav Total Expense 108 Unfav Net Operating Income 502 Fav

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