Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates conceming the company's costs: Cleaning supplies Electricity FAMOD Cost Cost per per Honth Can Mashed S 0.se $0.06 $ 1,000 Maintenance $0.10 $0.30 Wages and salaries Depreciation Rent Adeinistrative expenses $ 4,400 $8,400 $2,100 $ 1,400 $0.03 For example, electricity costs should be $1.400 per month plus S0.06 per car washed. The company expects to wash 8.500 cars in August and to collect an average of $6.00 per car washed. The company actually washed 8.600 cars in August. Required: Calculate the company's activity variances for August. (Indicete the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero veriance). Input all amounts es positive values.)

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Chapter1: Financial Statements And Business Decisions
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Lavage Rapide is a Canadlan company that owns and operates a large automatic car wash facility near Montreal. The following table
provides estimates concerning the company's costs:
Fixed Cost Cost per
per Honth Car kashed
Cleaning supplies
Electricity
Maintenance
$0.50
$ 1,400
S0.06
s0.10
$ 0.30
Wages and salaries
Depreciation
$ 4,480
$8,400
$2,100
$1,400
Rent
Adeinistrative expenses
$0.03
For example, electricity costs should be $1.400 per month plus $0.06 per car washed. The company expects to wash 8,500 cars in
August and to collect an average of $6.00 per car washed. The company actually washed 8.600 cars in August.
Required:
Calculate the company's activity varlances for August. (Indicate the effect of each varionce by selecting "F" for føvorable, "U" for
unfavorable, and "None" for no effect (i.e., zero varionce). Input all amounts es positive values.)
Lavage Rapide
Activity Variances
For the Month Ended August 31
Revenue
Expenses
Cleanina supolies
Transcribed Image Text:Lavage Rapide is a Canadlan company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Fixed Cost Cost per per Honth Car kashed Cleaning supplies Electricity Maintenance $0.50 $ 1,400 S0.06 s0.10 $ 0.30 Wages and salaries Depreciation $ 4,480 $8,400 $2,100 $1,400 Rent Adeinistrative expenses $0.03 For example, electricity costs should be $1.400 per month plus $0.06 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.00 per car washed. The company actually washed 8.600 cars in August. Required: Calculate the company's activity varlances for August. (Indicate the effect of each varionce by selecting "F" for føvorable, "U" for unfavorable, and "None" for no effect (i.e., zero varionce). Input all amounts es positive values.) Lavage Rapide Activity Variances For the Month Ended August 31 Revenue Expenses Cleanina supolies
For example, electricity costs should be $1,400 per month plus $0.06 per car washed. The company expects to wash 8,500 cars in
August and to collect an average of $6.00 per car washed. The company actually washed 8,600 cars in August.
Required:
Calculate the company's 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 os positive values.)
Lavage Rapide
Activity 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
Transcribed Image Text:For example, electricity costs should be $1,400 per month plus $0.06 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.00 per car washed. The company actually washed 8,600 cars in August. Required: Calculate the company's 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 os positive values.) Lavage Rapide Activity 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
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