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's costs:
|
Fixed Cost
per Month |
|
Cost per
Car Washed |
| Cleaning supplies |
|
|
|
$ |
0.80 |
| Electricity |
$ |
1,400 |
|
$ |
0.05 |
| Maintenance |
|
|
|
$ |
0.20 |
| Wages and salaries |
$ |
4,200 |
|
$ |
0.20 |
| Depreciation |
$ |
8,000 |
|
|
|
| Rent |
$ |
2,000 |
|
|
|
| Administrative expenses |
$ |
1,400 |
|
$ |
0.01 |
|
|
For example, electricity costs are $1,400 per month plus $0.05 per car washed. The company expects to wash 8,400 cars in October and to collect an average of $6.30 per car washed.
|
| The actual operating results for October appear below: |
Auto Lavage
Income Statement
For the Month Ended October 31 |
| Actual cars washed |
|
8,500 |
| Revenue |
$ |
55,020 |
|
|
|
| Expenses: |
|
| Cleaning supplies |
|
7,220 |
| Electricity |
|
1,790 |
| Maintenance |
|
1,920 |
| Wages and salaries |
|
6,240 |
| Depreciation |
|
8,000 |
| Rent |
|
2,200 |
| Administrative expenses |
|
1,384 |
|
|
|
| Total expense |
|
28,754 |
|
|
|
| Net operating income |
$ |
26,266 |
|
|
|
|
| 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 "$" sign in your response.)
|
Auto Lavage
Revenue and Spending Variances
For the Month Ended October 31 |
| Revenue |
$ |
(Click to select)FUNone |
|
|
|
| Expenses: |
|
|
| Cleaning supplies |
|
(Click to select)UFNone |
| Electricity |
|
(Click to select)NoneUF |
| Maintenance |
|
(Click to select)NoneFU |
| Wages and salaries |
|
(Click to select)UNoneF |
| Depreciation |
|
(Click to select)FUNone |
| Rent |
|
(Click to select)FUNone |
| Administrative expenses |
|
(Click to select)NoneFU |
|
|
|
| Total expense |
|
(Click to select)UNoneF |
|
|
|
| Net operating income |
$ |
(Click to select)UFNone |