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 Cost per per...


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Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table<br>provides data concerning the company's costs:<br>Fixed Cost<br>Cost per<br>per Month<br>Car Washed<br>Cleaning supplies<br>Electricity<br>Maintenance<br>$0.70<br>$0.09<br>$1,000<br>$0.15<br>Wages and salaries<br>Depreciation<br>Rent<br>$4,700<br>$8,400<br>$1,900<br>$1,700<br>$0.40<br>Administrative expenses<br>$0.05<br>For example, electricity costs are $1,000 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August<br>and to collect an average of $6.20 per car washed.<br>The actual operating results for August are as follows:<br>Lavage Rapide<br>Income Statement<br>For the Month Ended August 31<br>Actual cars washed<br>8,500<br>Revenue<br>$ 54,180<br>Expenses:<br>Cleaning supplies<br>Electricity<br>Maintenance<br>6,380<br>1,726<br>1,500<br>8,420<br>8,400<br>2,100<br>2,020<br>30,546<br>$ 23,634<br>Wages and salaries<br>Depreciation<br>Rent<br>Administrative expenses<br>Total expense<br>Net operating income<br>

Extracted text: 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 Cost per per Month Car Washed Cleaning supplies Electricity Maintenance $0.70 $0.09 $1,000 $0.15 Wages and salaries Depreciation Rent $4,700 $8,400 $1,900 $1,700 $0.40 Administrative expenses $0.05 For example, electricity costs are $1,000 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.20 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 8,500 Revenue $ 54,180 Expenses: Cleaning supplies Electricity Maintenance 6,380 1,726 1,500 8,420 8,400 2,100 2,020 30,546 $ 23,634 Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income
Required:<br>Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting

Extracted text: Required: Calculate the company's revenue and spending 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 Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income

Jun 10, 2022
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