Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following tabl provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month $2,700 6,000 9,600 3,400 3,100 Cost per Car Washed $0.70 0.10 0.30 0.40 0.07 The company expects to charge customers an average of $7.20 per car washed. Required: Prepare a flexible budget for October assuming either 8.000 or 9.000 cars are washed.
Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following tabl provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month $2,700 6,000 9,600 3,400 3,100 Cost per Car Washed $0.70 0.10 0.30 0.40 0.07 The company expects to charge customers an average of $7.20 per car washed. Required: Prepare a flexible budget for October assuming either 8.000 or 9.000 cars are washed.
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 4EB: Roper Furniture manufactures office furniture and tracks cost data across their process. The...
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![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:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
Fixed Cost
per Month
$2,700
6,000
9,600
3,400
3,100
Cost per
Car Washed
$0.70
0.10
0.30
0.40
0.07
The company expects to charge customers an average of $7.20 per car washed.
Required:
Prepare a flexible budget for October assuming either 8,000 or 9,000 cars are washed.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F37b57dc3-6ce2-496a-8c32-489a3dcf3dd7%2F29e14813-4c2e-4642-85e5-1f4cb750f650%2Ffbfq9wl_processed.png&w=3840&q=75)
Transcribed Image Text: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:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
Fixed Cost
per Month
$2,700
6,000
9,600
3,400
3,100
Cost per
Car Washed
$0.70
0.10
0.30
0.40
0.07
The company expects to charge customers an average of $7.20 per car washed.
Required:
Prepare a flexible budget for October assuming either 8,000 or 9,000 cars are washed.
![Variable expenses:
Total variable expenses
Fixed expenses:
AUTO LAVAGE INC.
Flexible Budget
For the Month Ended October 31
Budgeted
Amount
Per Unit
(per car)
Total fixed expenses
$
0.00
0.00
$
Cars Washed
8,000
0
0
0
0 $
9,000
0
0
0
0](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F37b57dc3-6ce2-496a-8c32-489a3dcf3dd7%2F29e14813-4c2e-4642-85e5-1f4cb750f650%2Ftmytr3i_processed.png&w=3840&q=75)
Transcribed Image Text:Variable expenses:
Total variable expenses
Fixed expenses:
AUTO LAVAGE INC.
Flexible Budget
For the Month Ended October 31
Budgeted
Amount
Per Unit
(per car)
Total fixed expenses
$
0.00
0.00
$
Cars Washed
8,000
0
0
0
0 $
9,000
0
0
0
0
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