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:

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Fixed Cost
per Month
Cost per
Car Washed
  Cleaning
supplies  
      $ 0.50     
  Electricity   $ 1,300      $ 0.06     
  Maintenance         $ 0.25     
  Wages and
salaries  
$ 4,800      $ 0.20     
  Depreciation   $ 8,100           
  Rent   $ 1,900           
  Administrative
expenses  
$ 1,300      $ 0.05     

  

For example, electricity costs are $1,300 per month plus $0.06
per car washed. The company expects to wash 8,200 cars in August
and to collect an average of $5.90 per car washed.

  

The actual operating results for
August appear below.

  

Lavage Rapide
Income Statement
For the Month Ended August 31
  Actual cars
washed
8,300   
  Revenue $ 50,480   
  Expenses:
      Cleaning supplies 4,600
  
      Electricity 1,762
  
      Maintenance 2,290   
      Wages and salaries 6,800   
      Depreciation 8,100   
      Rent 2,100   
      Administrative expenses 1,610   
  Total expense 27,262   
  Net operating
income
$ 23,218   

  

Required:

Complete the flexible budget performance report that shows the
company’s activity variances and 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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