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 |
|
|
|
|