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 per Month Cost per Car Washed Cleaning supplies $ 0.601 -28 Electricity $ 1,200 $ 0.07 Maintenance $ 0.20 Wages and salaries $ 4,200 $ 0.30 Depreciation $ 8,100 Rent $ 2,000 Administrative expenses $ 1,300 $ 0.02 For example, electricity costs should be $1,200 per month plus $0.07 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.00 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 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expenses Net operating income 8,500 $ 52,500 5,540 1,758 1,920 7,080 8,100 2,200 1,368 27,966 $ 24,534 36 Required: Calculate the company's revenue and spending 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. Answer is not complete. Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Revenue $ 1,500 Expenses: Cleaning supplies 440 U Electricity 37 F Maintenance 220 U Wages and salaries 330 U Depreciation 0None Rent 200 Administrative expenses 102 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 per Month Cost per Car Washed Cleaning supplies $ 0.601 -28 Electricity $ 1,200 $ 0.07 Maintenance $ 0.20 Wages and salaries $ 4,200 $ 0.30 Depreciation $ 8,100 Rent $ 2,000 Administrative expenses $ 1,300 $ 0.02 For example, electricity costs should be $1,200 per month plus $0.07 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.00 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 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expenses Net operating income 8,500 $ 52,500 5,540 1,758 1,920 7,080 8,100 2,200 1,368 27,966 $ 24,534 36 Required: Calculate the company's revenue and spending 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. Answer is not complete. Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Revenue $ 1,500 Expenses: Cleaning supplies 440 U Electricity 37 F Maintenance 220 U Wages and salaries 330 U Depreciation 0None Rent 200 Administrative expenses 102 Total expenses Net operating income
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