Question: Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: For example, electricity

Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: For example, electricity costs should be $1,100 per month plus $0.09 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.30 per car washed. The company actually washed 8,200 cars in August: Required: Calculate the company's activity variances for August. Note: Indicote the effect of each variance by solecting "F" for favorable, "U" for unfovorable, and "None" for no effect (i.e., zero varionce), Input all omounts as positive values. For example, electricity costs should be $1,100 per month plus $0,09 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.30 per car washed. The company actually washed 8,200 cars in August. Required: Calculate the company's activity varlances for August: Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, ond "None" for no effect (i.e., zero voriance). Input all amounts as positive values
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
