Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Cost per Fixed Cost per Month Car Washed $0.60 $ 1,200 $ 0.07 $0.10 $0.30 $ 4,400 $ 8,100 $ 2,100 $ 1,800 $ 0.03 For example, electricity costs should be $1,200 per month plus $0.07 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.40 per car washed. The company actually washed 8,500 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.
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Cost per Fixed Cost per Month Car Washed $0.60 $ 1,200 $ 0.07 $0.10 $0.30 $ 4,400 $ 8,100 $ 2,100 $ 1,800 $ 0.03 For example, electricity costs should be $1,200 per month plus $0.07 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.40 per car washed. The company actually washed 8,500 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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![Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table
provides estimates concerning the company's costs:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Administrative expenses
Rent
Cost per
Fixed Cost
per Month Car Washed
$0.60
$ 1,200
$ 0.07
$ 0.10
$ 4,400
$ 0.30
$ 8,100
$ 2,100
$ 1,800
$ 0.03
For example, electricity costs should be $1,200 per month plus $0.07 per car washed. The company expects to wash 8,400 cars in
August and to collect an average of $6.40 per car washed. The company actually washed 8,500 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F258f7b76-2d8d-463c-a1b0-19d434ba686f%2Ffa630567-60df-4faf-9d5b-421057be4862%2Fi0ntdw4_processed.png&w=3840&q=75)
Transcribed Image Text:Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table
provides estimates concerning the company's costs:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Administrative expenses
Rent
Cost per
Fixed Cost
per Month Car Washed
$0.60
$ 1,200
$ 0.07
$ 0.10
$ 4,400
$ 0.30
$ 8,100
$ 2,100
$ 1,800
$ 0.03
For example, electricity costs should be $1,200 per month plus $0.07 per car washed. The company expects to wash 8,400 cars in
August and to collect an average of $6.40 per car washed. The company actually washed 8,500 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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