Reference no: EM13508710

Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the companys 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 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 "tiny_mce_markerquot; sign in your response.)

Auto Lavage Revenue and Spending Variances For the Month Ended October 31
Revenue	$	(Click to select) F U None
Expenses:
Cleaning supplies		(Click to select) F U None
Electricity		(Click to select) F U None
Maintenance		(Click to select) F U None
Wages and salaries		(Click to select) F U None
Depreciation		(Click to select) F U None
Rent		(Click to select) F U None
Administrative expenses		(Click to select) F U None
Total expense		(Click to select) F U None
Net operating income	$	(Click to select) F U None