Question: 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
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 Cost per Month Car Washed Cleaning supplies $ 0.50 Electricity $ 1,100 $ 0.05 Maintenance $ 0.10 Wages and salaries $ 4,300 $ 0.30 Depreciation $ 8,000 Rent $ 2,000 Administrative expenses $ 1,500 $ 0.02 For example, electricity costs should be $1,100 per month plus $0.05 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.20 per car washed. The company actually washed 8,600 cars in August. Required: Calculate the company's activity 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.
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