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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 expected costs: Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Rent Administrative expenses Actual cars washed Sales Variable expenses: Cleaning supplies Electricity Maintenance. Wages and salaries. Admis Administrative imed Fixed expenses: Electricity SECOLLIC Wages and salaries. Depreciation For example, electricity costs are $2,910 per month plus $0.50 per car washed. The company expects to wash 9,400 cars in October and to collect an average of $8.20 per car washed. Auto Lavage's actual level of activity was 9,500 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Rent Fixed Cost per Month Administrative Total expense Net operating income $2,910 6,100 9,700 3,500 3,240 9,500 $80, 100 10,680 4,796 6,420 7,850 810 2,990 6,100 9,700 3,500 3,145 Cost per Car Washed $1.10 0.50 0.70 0.80 55,991 $24,109 0.08

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 expected costs: Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Rent Administrative expenses Actual cars washed Sales Variable expenses: Cleaning supplies Electricity Maintenance. Wages and salaries. Admis Administrative imed Fixed expenses: Electricity SECOLLIC Wages and salaries. Depreciation For example, electricity costs are $2,910 per month plus $0.50 per car washed. The company expects to wash 9,400 cars in October and to collect an average of $8.20 per car washed. Auto Lavage's actual level of activity was 9,500 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Rent Fixed Cost per Month Administrative Total expense Net operating income $2,910 6,100 9,700 3,500 3,240 9,500 $80, 100 10,680 4,796 6,420 7,850 810 2,990 6,100 9,700 3,500 3,145 Cost per Car Washed $1.10 0.50 0.70 0.80 55,991 $24,109 0.08

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Prepare a flexible budget performance report for October. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Sales Variable Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Administrative Total variable expenses Contribution margin Fixed expenses: Electricity Wages and salaries Depreciation Rent Administrative Total fixed expenses Operating income Show Transcribed Text Number of cars Sales Variable Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Administrative Total variable expenses. Contribution margin Fixed expenses: Electricity Wages and salaries Depreciation Rent AUTO LAVAGE INC. Flexible Budget Performance Report For the Month Ended October 31 Administrative Total fixed expenses Operating income Cost Formula (per car) Actual $ 2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 9,400 cars. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) 9,500 0 0 0.00 0 0 S 0 Actual AUTO LAVAGE INC. Comprehensive Performance Report For the Month Ended October 31 0 0 Flexible Budget 0 0 $ Flexible Budget Variance 0 0 o 0 $ Flexible Budget Flexible Budget 9,500 Variance 0 0 U IF F 0 of 0 Sales Volume Variance Static Budget $ 9,400 0 0 0 0
Transcribed Image Text:1. Prepare a flexible budget performance report for October. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Sales Variable Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Administrative Total variable expenses Contribution margin Fixed expenses: Electricity Wages and salaries Depreciation Rent Administrative Total fixed expenses Operating income Show Transcribed Text Number of cars Sales Variable Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Administrative Total variable expenses. Contribution margin Fixed expenses: Electricity Wages and salaries Depreciation Rent AUTO LAVAGE INC. Flexible Budget Performance Report For the Month Ended October 31 Administrative Total fixed expenses Operating income Cost Formula (per car) Actual $ 2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 9,400 cars. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) 9,500 0 0 0.00 0 0 S 0 Actual AUTO LAVAGE INC. Comprehensive Performance Report For the Month Ended October 31 0 0 Flexible Budget 0 0 $ Flexible Budget Variance 0 0 o 0 $ Flexible Budget Flexible Budget 9,500 Variance 0 0 U IF F 0 of 0 Sales Volume Variance Static Budget $ 9,400 0 0 0 0
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 expected costs: Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Rent Administrative expenses Actual cars washed Sales Variable expenses: Cleaning supplies Electricity Maintenance. Wages and salaries. Admis Administrative imed Fixed expenses: Electricity SECOLLIC Wages and salaries. Depreciation For example, electricity costs are $2,910 per month plus $0.50 per car washed. The company expects to wash 9,400 cars in October and to collect an average of $8.20 per car washed. Auto Lavage's actual level of activity was 9,500 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Rent Fixed Cost per Month Administrative Total expense Net operating income $2,910 6,100 9,700 3,500 3,240 9,500 $80, 100 10,680 4,796 6,420 7,850 810 2,990 6,100 9,700 3,500 3,145 Cost per Car Washed $1.10 0.50 0.70 0.80 55,991 $24,109 0.08
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 expected costs: Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Rent Administrative expenses Actual cars washed Sales Variable expenses: Cleaning supplies Electricity Maintenance. Wages and salaries. Admis Administrative imed Fixed expenses: Electricity SECOLLIC Wages and salaries. Depreciation For example, electricity costs are $2,910 per month plus $0.50 per car washed. The company expects to wash 9,400 cars in October and to collect an average of $8.20 per car washed. Auto Lavage's actual level of activity was 9,500 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Rent Fixed Cost per Month Administrative Total expense Net operating income $2,910 6,100 9,700 3,500 3,240 9,500 $80, 100 10,680 4,796 6,420 7,850 810 2,990 6,100 9,700 3,500 3,145 Cost per Car Washed $1.10 0.50 0.70 0.80 55,991 $24,109 0.08
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