Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table...
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Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Fixed Cost Cost per Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses per Month Car Washed $ 0.60 $ 1,400 $ 0.05 $ 0.25 $ 4,800 $ 0.30 $ 8,100 $ 2,200 $ 1,800 $ 0.04 For example, electricity costs should be $1,400 per month plus $0.05 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.20 per car washed. The company actually washed 8,400 cars in August. Required: Calculate the company's activity variances for August. Note: 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. Revenue Lavage Rapide Activity Variances For the Month Ended August 31 Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expenses Net operating income Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Fixed Cost Cost per Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses per Month Car Washed $ 0.60 $ 1,400 $ 0.05 $ 0.25 $ 4,800 $ 0.30 $ 8,100 $ 2,200 $ 1,800 $ 0.04 For example, electricity costs should be $1,400 per month plus $0.05 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.20 per car washed. The company actually washed 8,400 cars in August. Required: Calculate the company's activity variances for August. Note: 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. Revenue Lavage Rapide Activity Variances For the Month Ended August 31 Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expenses Net operating income
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