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In: Accounting

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility...

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 $ 0.60
Electricity $ 1,100 $ 0.10
Maintenance $ 0.30
Wages and salaries $ 4,000 $ 0.40
Depreciation $ 8,100
Rent $ 1,900
Administrative expenses $ 1,500 $ 0.03

For example, electricity costs are $1,100 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.90 per car washed. The company actually washed 8,400 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 as positive values.)

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