Exercise $9-13($Algo$)$ Prepare a Flexible Budget Performance Report $[$LO$9-4]$

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company$$s costs:

Fixed Cost per Month Cost per Car Washed

Cleaning supplies $ $0\mathrm{.}70$

Electricity $ $1,100$ $ $0\mathrm{.}05$

Maintenance $ $0\mathrm{.}25$

Wages and salaries $ $4,700$ $ $0\mathrm{.}30$

Depreciation $ $8,500$

Rent $ $1,800$

Administrative expenses $ $1,700$ $ $0\mathrm{.}02$

For example, electricity costs should be $$1,100$ per month plus $$0\mathrm{.}05$ per car washed. The company expects to wash $8,200$ cars in August and to collect an average of $$6\mathrm{.}10$ per car washed.

The actual operating results for August are as follows:

Lavage Rapide

Income Statement

For the Month Ended August $31$

Actual cars washed $8,300$

Revenue $ $52,120$

Expenses:

Cleaning supplies $6,240$

Electricity $1,480$

Maintenance $2,290$

Wages and salaries $7,520$

Depreciation $8,500$

Rent $2,000$

Administrative expenses $1,764$

Total expense $29,794$

Net operating income $ $22,326$

Required:

Prepare a flexible budget performance report that shows the company$$s revenue and spending variances and 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.