Exercise $9-9($Algo$)$ Prepare a Report Showing Revenue and Spending Variances $[$LO$9-2]$

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 company$$s costs:

Fixed Cost per Month Cost per Car Washed

Cleaning supplies $ $0\mathrm{.}80$

Electricity $ $1,200$ $ $0\mathrm{.}05$

Maintenance $ $0\mathrm{.}25$

Wages and salaries $ $4,200$ $ $0\mathrm{.}40$

Depreciation $ $8,300$

Rent $ $1,900$

Administrative expenses $ $1,800$ $ $0\mathrm{.}05$

For example, electricity costs are $$1,200$ per month plus $$0\mathrm{.}05$ per car washed. The company expects to wash $8,200$ cars in August and to collect an average of $$6\mathrm{.}70$ 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 $ $57,040$

Expenses:

Cleaning supplies $7,060$

Electricity $1,580$

Maintenance $2,290$

Wages and salaries $7,840$

Depreciation $8,300$

Rent $2,100$

Administrative expenses $2,110$

Total expense $31,280$

Net operating income $ $25,760$

Required:

Calculate the company's 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. Do not round intermediate calculations.$)$