Exercise 9-13 (Algo) Prepare a Flexible Budget Performance Report [LO9-4]

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 companys costs:

	Fixed Cost per Month	Cost per Car Washed
Cleaning supplies		$ 0.50
Electricity	$ 1,500	$ 0.07
Maintenance		$ 0.15
Wages and salaries	$ 4,700	$ 0.30
Depreciation	$ 8,100
Rent	$ 2,000
Administrative expenses	$ 1,400	$ 0.05

For example, electricity costs should be $1,500 per month plus $0.07 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $5.90 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	8,500
Revenue	$ 51,660
Expenses:
Cleaning supplies	4,700
Electricity	2,058
Maintenance	1,500
Wages and salaries	7,580
Depreciation	8,100
Rent	2,200
Administrative expenses	1,720
Total expense	27,858
Net operating income	$ 23,802

Required:

Prepare a flexible budget performance report that shows the companys revenue and spending variances and activity 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.)

Exercise 9-13 (Algo) Prepare a Flexible Budget Performance Report (LO9-4] 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 $ 1,500 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Car Washed $ 0.50 $ 0.07 $ 0.15 $ 0.30 $ 4,700 $ 8,100 $ 2,000 $ 1,400 $ 0.05 For example, electricity costs should be $1,500 per month plus $0.07 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $5.90 per car washed. The actual operating results for August are as follows: Revenue Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,500 $ 51,660 Expenses : Cleaning supplies 4,700 2,058 Maintenance 1500 we Wages and salaries 7,580 Depreciation Rent Administrative expenses 1,720 Total expense 27,858 Net operating income $ 23,802 Electricity 8,100 2,200 Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity 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 Flexible Budget Performance Report For the Month Ended August 31 Actual Results Flexible Budget Planning Budget Cars washed 8,500 51,660 Revenue $ 4,700 2,058 Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent 1,500 7,580 8,100 2,200 Administrative expenses 1,720 27,858 Total expense Net operating income $ 23,802