Calculate the companys activity variances for august

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Reference no: EM132984224

Question: 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:

Fixed Cost
per MonthCost per
Car WashedCleaning supplies $0.50 Electricity$1,200 $0.08 Maintenance $0.25 Wages and salaries$4,600 $0.40 Depreciation$8,400 Rent$1,900 Administrative expenses$1,700 $0.04

For example, electricity costs should be $1,200 per month plus $0.08 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. (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.)

Reference no: EM132984224

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