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belt. Cars are washed as the conveyor belt carries them from the start station to the Ex. (02): Omar operates a car wash. Incoming cars are put on an automatic conveyor belt. Cars are washed as the convevor belt carries them from the start station to he

belt. Cars are washed as the conveyor belt carries them from the start station to the Ex. (02): Omar operates a car wash. Incoming cars are put on an automatic conveyor belt. Cars are washed as the convevor belt carries them from the start station to he

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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beit. Cars are washed as the convevor belt carries them from the start station to the mish station. After a car moves off the conveyor belt, it is dried manually. Workers thên clean and vacuum the inside of the car. Omar serviced 80,000 cars in 2019. Omar reports the following costs for 2019: Account Description Costs Car wash labor L.E. 260,000 Soap, cloth, and supplies 42,000 000 72,000 Water Electric power to move conveyor belt Depreciation Salaries 0006 Required: 1- According to account analysis method, classify each account as variable or fixed with respect to the number of cars washed. Explain. 2- Suppose Omar washed 90,000 cars in 2019. Use the cost classification you developed in requirement 1 to estimate Omar's total costs in 2019. Depreciation is computed on a straight line basis.
Transcribed Image Text:beit. Cars are washed as the convevor belt carries them from the start station to the mish station. After a car moves off the conveyor belt, it is dried manually. Workers thên clean and vacuum the inside of the car. Omar serviced 80,000 cars in 2019. Omar reports the following costs for 2019: Account Description Costs Car wash labor L.E. 260,000 Soap, cloth, and supplies 42,000 000 72,000 Water Electric power to move conveyor belt Depreciation Salaries 0006 Required: 1- According to account analysis method, classify each account as variable or fixed with respect to the number of cars washed. Explain. 2- Suppose Omar washed 90,000 cars in 2019. Use the cost classification you developed in requirement 1 to estimate Omar's total costs in 2019. Depreciation is computed on a straight line basis.
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