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
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Gadubhai
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa6bf81c9-7e82-442e-bc99-44f525be4826%2F9942170e-50a8-4e9c-9e6d-2a0f920e8527%2Fd9rt4d9_processed.jpeg&w=3840&q=75)
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