365 Glean P My MathLab Connect WSJ WSJ to 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 $0.60 Electricity Maintenance $1,300 $0.09 50.25 Wages and salaries $4,600 $0.30 Depreciation $8,200 Rent $1,800 Administrative expenses $1,600 $0.04 For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expects to wash 8,100 cars In August and to collect an average of $6.10 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 8,200 Revenue $51,510 Expenses: Cleaning supplies 5,360 Electricity 1,999 Maintenance 2,265 Wages and salaries 7,390 Depreciation 8,200 Rent 2,000 Administrative expenses 1,824 Total expense 29,038 Net operating income $22,472 Required: Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses S 2,100 F Cleaning supplies 500 U Electricity 30 Maintenance 240 U Wages and salaries 360 U Depreciation 0 None Rent 0 None Administrative expenses Total expense Net operating income 100 F 1,170 U S 940 F
365 Glean P My MathLab Connect WSJ WSJ to 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 $0.60 Electricity Maintenance $1,300 $0.09 50.25 Wages and salaries $4,600 $0.30 Depreciation $8,200 Rent $1,800 Administrative expenses $1,600 $0.04 For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expects to wash 8,100 cars In August and to collect an average of $6.10 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 8,200 Revenue $51,510 Expenses: Cleaning supplies 5,360 Electricity 1,999 Maintenance 2,265 Wages and salaries 7,390 Depreciation 8,200 Rent 2,000 Administrative expenses 1,824 Total expense 29,038 Net operating income $22,472 Required: Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses S 2,100 F Cleaning supplies 500 U Electricity 30 Maintenance 240 U Wages and salaries 360 U Depreciation 0 None Rent 0 None Administrative expenses Total expense Net operating income 100 F 1,170 U S 940 F
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Topic Video
Question
Transcribed Image Text:365
Glean
P My MathLab
Connect
WSJ WSJ
to
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
$0.60
Electricity
Maintenance
$1,300
$0.09
50.25
Wages and salaries
$4,600
$0.30
Depreciation
$8,200
Rent
$1,800
Administrative expenses
$1,600
$0.04
For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expects to wash 8,100 cars In August
and to collect an average of $6.10 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
8,200
Revenue
$51,510
Expenses:
Cleaning supplies
5,360
Electricity
1,999
Maintenance
2,265
Wages and salaries
7,390
Depreciation
8,200
Rent
2,000
Administrative expenses
1,824
Total expense
29,038
Net operating income
$22,472
Required:
Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for
favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
Lavage Rapide
Revenue and Spending Variances
For the Month Ended August 31
Revenue
Expenses
S
2,100 F
Cleaning supplies
500 U
Electricity
30
Maintenance
240 U
Wages and salaries
360 U
Depreciation
0 None
Rent
0 None
Administrative expenses
Total expense
Net operating income
100 F
1,170 U
S
940 F
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education