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  3. lavage rapide is a canadian company that owns and operates...

Question: lavage rapide is a canadian company that owns and operates...

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Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the companys costs: Fixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.70 $0.09 $0.20 $0.40 $1,200 $4,600 $ 8,400 $2,000 $1,400 $0.01 For example, electricity costs are $1,200 per month plus $0.09 per car washed. The company expects to wash 8100 cars in August and to collect an average of $6.70 per car washed The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,200 S56.370 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 6,170 1,899 1,860 8,200 8,400 2,200 1,381 30.110 Total expense Net operating income $26,260 Required: Calculate the companys 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.)

Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income

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