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Business, 29.06.2021 16:10 mads3499

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 $ 0.80 Electricity $ 1,300 $ 0.09 Maintenance $ 0.15 Wages and salaries $ 4,300 $ 0.30 Depreciation $ 8,400 Rent $ 1,900 Administrative expenses $ 1,500 $ 0.02 For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.90 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,600 Revenue $ 60,750 Expenses: Cleaning supplies 7,300 Electricity 2,035 Maintenance 1,515 Wages and salaries 7,210 Depreciation 8,400 Rent 2,100 Administrative expenses 1,570 Total expense 30,130 Net operating income $ 30,620 Required:
Prepare a report showing the company's activity variances for August.

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