Question: How do I solve this? Exercise 9-14 Prepare a Flexible Budget Performance Report [LO9-4] Lavage Rapide is a Canadian company that owns and operates a

How do I solve this?
How do I solve this? Exercise 9-14 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

Exercise 9-14 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 data concerning the company's costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies Electricity $0.70 $1,400 $0.08 Maintenance $0.20 Wages and salaries $4,200 $0.30 Depreciation $8,200 Rent $1,900 Administrative expenses $1,300 $0.04 For example, electricity costs are $1,400 per month plus $0.08 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.80 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,300 Re For example, electricity costs are $1,400 per month plus $0.08 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.80 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,300 Revenue $57,860 Expenses: Cleaning supplies 6,240 Electricity 2,026 Maintenance 1,880 Wages and salaries 7,020 Depreciation 8,200 Rent 2,100 Administrative expenses Total expense 1,528 28,994 Net operating income $ 28,866 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.) Cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Flexible Budget $ 57,860 F U F U U None U F U F Actual Results 8,300 $ 57,860 6,240 2,026 1,880 7,020 8,200 2,100 1,528 28,994 $ 28,866 > 333333333 F U None None U U F > 3333333 Planning Budget

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