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Business, 03.08.2021 17:10 Soloved

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash 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 $1,200     $0.15     
Maintenance $0.20     
Wages and salaries $5,000     $0.30     
Depreciation $6,000    
Rent $8,000    
Administrative expenses $4,000     $0.10

For example, electricity costs are $1,200 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.50 per car washed. The actual operating results for August appears below:

Actual cars washed 8,800
Revenue $43,080
Expenses:
Cleaning supplies 7,560
Electricity 2,670
Maintenance 2,260
Wages and salaries 8,500
Depreciation 6,000
Rent 8,000
Administrative expenses 4,950
Total expense 39,940
Net operating income 3,140

Required:
Prepare a report showing the company's activity variances for August.

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