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 Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed Sales Variable expenses: Cleaning supplies Electricity Maintenance Hages and salaries Administrative Fixed expenses: For example, electricity costs are $2,500 per month plus $0.50 per car washed. The company expects to wash 9,000 cars in October and to collect an average of $8.80 per car washed. Auto Lavage's actual level of activity was 9,100 cars. The actual revenues and expenses for October are given below: Electricity Wages and salaries Depreciation Rent Administrative Total expense Net operating income Variable Expenses: Fixed Cost per Month Total variable expenses $2,500 5,700 9,300 Fixed expenses 3,100 2,800 9,100 $82,600 10,510 4,622 6,050 7,450 410 Cost per Car Washed $1.10 0.50 0.70 0.80 2,550 5,700 9,300 3,100 2,745 52,437 $30,163 Required: 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).) 0.04 AUTO LAVAGE INC. Flexible Budget Performance Report For the Month Ended October 31 Cost Formula (per car) 0.00 0 Actual 0 0 Flexible Flexible Budget Budget Variance
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 Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed Sales Variable expenses: Cleaning supplies Electricity Maintenance Hages and salaries Administrative Fixed expenses: For example, electricity costs are $2,500 per month plus $0.50 per car washed. The company expects to wash 9,000 cars in October and to collect an average of $8.80 per car washed. Auto Lavage's actual level of activity was 9,100 cars. The actual revenues and expenses for October are given below: Electricity Wages and salaries Depreciation Rent Administrative Total expense Net operating income Variable Expenses: Fixed Cost per Month Total variable expenses $2,500 5,700 9,300 Fixed expenses 3,100 2,800 9,100 $82,600 10,510 4,622 6,050 7,450 410 Cost per Car Washed $1.10 0.50 0.70 0.80 2,550 5,700 9,300 3,100 2,745 52,437 $30,163 Required: 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).) 0.04 AUTO LAVAGE INC. Flexible Budget Performance Report For the Month Ended October 31 Cost Formula (per car) 0.00 0 Actual 0 0 Flexible Flexible Budget Budget Variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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
Administrative expenses
Rent
Auto Lavage
Income Statement
For the Month Ended October 31
Actual cars washed
Sales
Variable expenses:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Administrative
Fixed expenses:
For example, electricity costs are $2,500 per month plus $0.50 per car washed. The company expects to wash 9,000 cars in October
and to collect an average of $8.80 per car washed.
Auto Lavage's actual level of activity was 9,100 cars. The actual revenues and expenses for October are given below:
Electricity
Wages and salaries
Depreciation
Rent
Administrative
Total expense
Net operating income
Variable Expenses:
Fixed Cost
per Month
Total variable expenses
$2,500
Fixed expenses:
5,700
9,300
3,100
2,800
9,100
$82,600
10,510
4,622
6,050
7,450
410
2,550
5,700
9,300
3,100
2,745
52,437
$30,163
Required:
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).)
Cost per
Car Washed
$1.10
0.50
0.70
0.80
0.04
Cost Formula
(per car)
AUTO LAVAGE INC.
Flexible Budget Performance Report
For the Month Ended October 31
0.00
0
Actual
0
0
Flexible
Budget
Flexible Budget
Variance
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