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Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost Cost per per Month Car Washed $ 0.60 $ 1,400 $ 0.06 $ 0.15 $ 4,700 $ 0.20 $ 8,100 $ 1,900 $ 1,600 $ 0.03 For example, electricity costs should be $1,400 per month plus $0.06 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.60 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 expenses Net operating income Required: 8,500 $ 57,540 5,540 1,874 1,500 6,740 8,100 2,100 1,752 27,606 $ 29,934 Calculate the company's revenue and spending variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero

Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost Cost per per Month Car Washed $ 0.60 $ 1,400 $ 0.06 $ 0.15 $ 4,700 $ 0.20 $ 8,100 $ 1,900 $ 1,600 $ 0.03 For example, electricity costs should be $1,400 per month plus $0.06 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.60 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 expenses Net operating income Required: 8,500 $ 57,540 5,540 1,874 1,500 6,740 8,100 2,100 1,752 27,606 $ 29,934 Calculate the company's revenue and spending variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero

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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Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.60 Electricity $ 1,400 $ 0.06 Maintenance $ 0.15 Wages and salaries Depreciation Rent Administrative expenses $ 4,700 $ 0.20 $ 8,100 $ 1,900 $ 1,600 $ 0.03 For example, electricity costs should be $1,400 per month plus $0.06 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.60 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 expenses Net operating income Required: 8,500 $ 57,540 5,540 1,874 1,500 6,740 8,100 2,100 1,752 27,606 $ 29,934 Calculate the company's revenue and spending variances for August. Note: 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.
Transcribed Image Text:Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.60 Electricity $ 1,400 $ 0.06 Maintenance $ 0.15 Wages and salaries Depreciation Rent Administrative expenses $ 4,700 $ 0.20 $ 8,100 $ 1,900 $ 1,600 $ 0.03 For example, electricity costs should be $1,400 per month plus $0.06 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.60 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 expenses Net operating income Required: 8,500 $ 57,540 5,540 1,874 1,500 6,740 8,100 2,100 1,752 27,606 $ 29,934 Calculate the company's revenue and spending variances for August. Note: 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.
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