Auto lavage is a canadian company that owns and operates a

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Reference no: EM13568429

Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company's costs:

Fixed Cost
per Month

Cost per
Car Washed

Cleaning supplies			$	0.80
Electricity	$	1,400	$	0.05
Maintenance			$	0.20
Wages and salaries	$	4,200	$	0.20
Depreciation	$	8,000
Rent	$	2,000
Administrative expenses	$	1,400	$	0.01

For example, electricity costs are $1,400 per month plus $0.05 per car washed. The company expects to wash 8,400 cars in October and to collect an average of $6.30 per car washed.

The actual operating results for October appear below:

Auto Lavage Income Statement For the Month Ended October 31
Actual cars washed		8,500
Revenue	$	55,020

Expenses:
Cleaning supplies		7,220
Electricity		1,790
Maintenance		1,920
Wages and salaries		6,240
Depreciation		8,000
Rent		2,200
Administrative expenses		1,384

Total expense		28,754

Net operating income	$	26,266

Required:

Compute the company's revenue and spending variances for October.

(Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)

Auto Lavage Revenue and Spending Variances For the Month Ended October 31
Revenue	$	(Click to select)FUNone

Expenses:
Cleaning supplies		(Click to select)UFNone
Electricity		(Click to select)NoneUF
Maintenance		(Click to select)NoneFU
Wages and salaries		(Click to select)UNoneF
Depreciation		(Click to select)FUNone
Rent		(Click to select)FUNone
Administrative expenses		(Click to select)NoneFU

Total expense		(Click to select)UNoneF

Net operating income	$	(Click to select)UFNone

Reference no: EM13568429

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