Do not give solution in image format 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).)SalesVariable Expenses:Cleaning suppliesElectricityMaintenanceWages and salariesAdministrativeTotal variable expensesContribution marginFixed expenses:ElectricityWages and salariesDepreciationRentAdministrativeTotal fixed expensesOperating incomeShow Transcribed TextNumber of carsSalesVariable Expenses:Cleaning suppliesElectricityMaintenanceWages and salariesAdministrativeTotal variable expenses.Contribution marginFixed expenses:ElectricityWages and salariesDepreciationRentAUTO LAVAGE INC.Flexible Budget Performance ReportFor the Month Ended October 31AdministrativeTotal fixed expensesOperating incomeCost Formula(per car)Actual$2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity levelof 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).)9,500000.0000S0ActualAUTO LAVAGE INC.Comprehensive Performance ReportFor the Month Ended October 3100FlexibleBudget00 $Flexible BudgetVariance00o0$Flexible BudgetFlexibleBudget9,500Variance00UIFF0of0Sales Volume VarianceStaticBudget$9,4000000 Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following tableprovides data concerning the company's expected costs:Cleaning suppliesElectricityMaintenanceWages and salaries.DepreciationRentAdministrative expensesActual cars washedSalesVariable expenses:Cleaning suppliesElectricityMaintenance.Wages and salaries.AdmisAdministrativeimedFixed expenses:ElectricitySECOLLICWages and salaries.DepreciationFor example, electricity costs are $2,910 per month plus $0.50 per car washed. The company expects to wash 9,400 cars in Octoberand 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 LavageIncome StatementFor the Month Ended October 31RentFixed Costper MonthAdministrativeTotal expenseNet operating income$2,9106,1009,7003,5003,2409,500$80, 10010,6804,7966,4207,8508102,9906,1009,7003,5003,145Cost perCar Washed$1.100.500.700.8055,991$24,1090.08

Flexible Budget Variance :— It is the difference between flexible budget and actual results.…

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Do not give solution in image format

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

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