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.)
|