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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 Electricity Maintenance Wages and salaries Depreciation s0. 80 $0. 05 $0. 20 $0. 40 $1, 300 $4,400 $8,100 $2,000 $1,600 Rent Administrative expenses $0.01 For example, electricity costs are $1,300 per month plus $0.05 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.50 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,500 $ 56, 700 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 7,220 1,690 1,920 8,120 8,100 2,200 1,584 30,834 $ 25,866 Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity 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 Flexible Budget Performance Report For the Month Ended August 31 Actual Results Flexible Planning Budget Budget Cars washed 8,500 Revenue 56,700 Expenses: Cleaning supplies 7,220 Electricity 1,690 Maintenance 1,920 Wages and salaries 8,120 Depreciation 8,100 Rent 2,200 Administrative expenses 1,584 Total expense 30,834 Net operating income 25,866

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 Electricity Maintenance Wages and salaries Depreciation s0. 80 $0. 05 $0. 20 $0. 40 $1, 300 $4,400 $8,100 $2,000 $1,600 Rent Administrative expenses $0.01 For example, electricity costs are $1,300 per month plus $0.05 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.50 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,500 $ 56, 700 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 7,220 1,690 1,920 8,120 8,100 2,200 1,584 30,834 $ 25,866 Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity 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 Flexible Budget Performance Report For the Month Ended August 31 Actual Results Flexible Planning Budget Budget Cars washed 8,500 Revenue 56,700 Expenses: Cleaning supplies 7,220 Electricity 1,690 Maintenance 1,920 Wages and salaries 8,120 Depreciation 8,100 Rent 2,200 Administrative expenses 1,584 Total expense 30,834 Net operating income 25,866

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 Electricity Maintenance Wages and salaries Depreciation s0. 80 $0. 05 $0. 20 $0. 40 $1, 300 $4,400 $8,100 $2,000 $1,600 Rent Administrative expenses $0.01 For example, electricity costs are $1,300 per month plus $0.05 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.50 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,500 $ 56, 700 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 7,220 1,690 1,920 8,120 8,100 2,200 1,584 30,834 $ 25,866
Transcribed Image Text: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 Electricity Maintenance Wages and salaries Depreciation s0. 80 $0. 05 $0. 20 $0. 40 $1, 300 $4,400 $8,100 $2,000 $1,600 Rent Administrative expenses $0.01 For example, electricity costs are $1,300 per month plus $0.05 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.50 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,500 $ 56, 700 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 7,220 1,690 1,920 8,120 8,100 2,200 1,584 30,834 $ 25,866
Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity 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 Flexible Budget Performance Report For the Month Ended August 31 Actual Results Flexible Planning Budget Budget Cars washed 8,500 Revenue 56,700 Expenses: Cleaning supplies 7,220 Electricity 1,690 Maintenance 1,920 Wages and salaries 8,120 Depreciation 8,100 Rent 2,200 Administrative expenses 1,584 Total expense 30,834 Net operating income 25,866
Transcribed Image Text:Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity 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 Flexible Budget Performance Report For the Month Ended August 31 Actual Results Flexible Planning Budget Budget Cars washed 8,500 Revenue 56,700 Expenses: Cleaning supplies 7,220 Electricity 1,690 Maintenance 1,920 Wages and salaries 8,120 Depreciation 8,100 Rent 2,200 Administrative expenses 1,584 Total expense 30,834 Net operating income 25,866
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