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Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month Cost per Car Washed $ 0.70 $ 1,200 $ 0.08 $ 0.20 $ 4,500 $ 0.30 $ 8,400 $ 2,000 $ 1,600 $ 0.01 For example, electricity costs should be $1,200 per month plus $0.08 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.80 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,200 Revenue $57,180 Expenses: Cleaning supplies 6,170 Electricity 1,818 Maintenance 1,860 Wages and salaries 7,290 Depreciation

Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month Cost per Car Washed $ 0.70 $ 1,200 $ 0.08 $ 0.20 $ 4,500 $ 0.30 $ 8,400 $ 2,000 $ 1,600 $ 0.01 For example, electricity costs should be $1,200 per month plus $0.08 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.80 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,200 Revenue $57,180 Expenses: Cleaning supplies 6,170 Electricity 1,818 Maintenance 1,860 Wages and salaries 7,290 Depreciation

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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Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month Cost per Car Washed $ 0.70 $ 1,200 $ 0.08 $ 0.20 $ 4,500 $ 0.30 $ 8,400 $ 2,000 $ 1,600 $ 0.01 For example, electricity costs should be $1,200 per month plus $0.08 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.80 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Required: 8,200 $ 57,180 6,170 1,818 1,860 7,290 8,400 2,200 1,581 29,319 $ 27,861 Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Results: 8,200 Cars washed Revenue Evnaneae $ 57,180 Flexible Planning Budget Budget 8,200 8,100
Transcribed Image Text:Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month Cost per Car Washed $ 0.70 $ 1,200 $ 0.08 $ 0.20 $ 4,500 $ 0.30 $ 8,400 $ 2,000 $ 1,600 $ 0.01 For example, electricity costs should be $1,200 per month plus $0.08 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.80 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Required: 8,200 $ 57,180 6,170 1,818 1,860 7,290 8,400 2,200 1,581 29,319 $ 27,861 Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Results: 8,200 Cars washed Revenue Evnaneae $ 57,180 Flexible Planning Budget Budget 8,200 8,100
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