Auto lavage is a canadian company that owns and operates a

Reference no: EM13578483

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%u2019s costs:

Fixed Cost
per Month

Cost per
Car Washed

Cleaning supplies			$	0.70
Electricity	$	1,400	$	0.10
Maintenance			$	0.30
Wages and salaries	$	4,700	$	0.40
Depreciation	$	8,300
Rent	$	2,100
Administrative expenses	$	1,800	$	0.05

For example, electricity costs are $1,400 per month plus $0.10 per car washed. The company expects to wash 8,000 cars in October and to collect an average of $5.90 per car washed.

The actual operating results for October appear below:

Auto Lavage Income Statement For the Month Ended October 31
Actual cars washed		8,100
Revenue	$	49,300

Expenses:
Cleaning supplies		6,100
Electricity		2,170
Maintenance		2,640
Wages and salaries		8,260
Depreciation		8,300
Rent		2,300
Administrative expenses		2,100

Total expense		31,870

Net operating income	$	17,430

Required:

Compute the company's activity 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 Activity Variances For the Month Ended October 31
Revenue	$

Expenses:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses

Total expense

Net operating income	$

Reference no: EM13578483

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