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 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 $ $0\mathrm{.}70$

Electricity $ $1,300$ $ $0\mathrm{.}07$

Maintenance $ $0\mathrm{.}10$

Wages and salaries $ $4,700$ $ $0\mathrm{.}30$

Depreciation $ $8,000$

Rent $ $2,000$

Administrative expenses $ $1,700$ $ $0\mathrm{.}04$

For example, electricity costs are $$1,300$ per month plus $$0\mathrm{.}07$ per car washed. The company expects to wash $8,500$ cars in August and to collect an average of $$6\mathrm{.}50$ per car washed.

The actual operating results for August appear below.

Lavage Rapide

Income Statement

For the Month Ended August $31$

Actual cars washed $8,600$

Revenue $ $57,350$

Expenses:

Cleaning supplies $6,450$

Electricity $1,865$

Maintenance $1,090$

Wages and salaries $7,610$

Depreciation $8,000$

Rent $2,200$

Administrative expenses $1,940$

Total expense $29,155$

Net operating income $ $28,195$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:

For example, electricity costs are $$1,300$ per month plus $$0\mathrm{.}07$ per car washed. The company expects to wash $8,500$ cars in August

and to collect an average of $$6\mathrm{.}50$ per car washed.

The actual operating results for August appear below.