Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Administrative expenses Rent Lavage Rapide Income Statement Actual care vashed Revenue Expenses: For the Month Ended August 31 For example, electricity costs are $1,100 per month plus $0.08 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.60 per car washed. The actual operating results for August appear below. Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost per Month $1,100 $4,800 $8,400 $2,000 $1,500 Administrative expenses Total expense Net operating income 8,600 $58,200 6,450 1,750 Coat per Car Washed 1,090 7,710 8,400 2,200 1,655 29,255 $ 28,945 $0.70 $0.08 $0.10 $0.30 $0.03 Required: 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

Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Administrative expenses Rent Lavage Rapide Income Statement Actual care vashed Revenue Expenses: For the Month Ended August 31 For example, electricity costs are $1,100 per month plus $0.08 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.60 per car washed. The actual operating results for August appear below. Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost per Month $1,100 $4,800 $8,400 $2,000 $1,500 Administrative expenses Total expense Net operating income 8,600 $58,200 6,450 1,750 Coat per Car Washed 1,090 7,710 8,400 2,200 1,655 29,255 $ 28,945 $0.70 $0.08 $0.10 $0.30 $0.03 Required: 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

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 20E

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Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Lavage Rapide Income Statement Actual cars washed Revenue Expenses: Rent For example, electricity costs should be $1,200 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.10 per car washed. The actual operating results for August are as follows: For the Month Ended August 31 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Fixed Cost per Month $ 1,200 $ 4,000 $ 8,100 $ 2,000 $ 1,700 Administrative expenses Total expenses Net operating income Cost per Car Washed $0.70 8,500 $ 53,340 6,380 1,842 1,080 6,880 8,100 $ 0.08 $ 0.10 $ 0.30 2,200 1,936 28,418 $ 24,922 $ 0.04 Required: 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 Check my work 3
Botana Company constructed the following formula for its monthly utility cost. Total utility cost = $1,200 + ($8.10 × Labor hours) Assume that 775 labor hours are budgeted for the month of April. If Botana Company incurs 9,600 labor hours for the year, what would be the estimate of total utility cost?
Subject: accounting
A company uses charging rates to allocate service department costs to the using departments. The accountant compiled the following information on one of the service departments: If Department K plans to use 1,350 hours of the service departments service in the coming year, how much of the service departments cost is allocated to Department K? a. 3,375 b. 27,300 c. 26,325 d. 23,950
Amusement tickets estimated sales are: What are the balances in accounts receivable for April, May, and June if 60% of sales are collected in the month of sale, 30% are collected the month after the sale, and 10% are collected the second month after the sale?
Desiccate purchases direct materials each month. Its payment history shows that 70% is paid in the month of purchase with the remaining balance pad the month after purchase. Prepare a cash payment schedule for March if in January through March, it purchased $35,000, $37,000, and $39,000, respectively.
Utilization rate Delta Air Lines (DAL) reported the following data (in millions) for three recent years. Delta refers to its utilization rates as passenger load factor. Compute the passenger load factor (utilization rate) for each year.
Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.
Accounting
The following information is available about electricity costs for the first six months of the year. Management think that electricity costs are likely to be related to how long machines are running. Month Machinehours ElectricityCost January 2,800 $2,925 February 5,600 $5,526 March 6,200 $5,980 April 3,500 $3,620 May 2,300 $2,470 June 4,500 $4,450 You may wish to refer to the formula sheet to answer this question. If you haven't already downloaded it, you can download it here. Required: Using the high-low method, (a) calculate the fixed costs b. state the cost formula for estimating the electricity cost based on the machine hours
The following information is available about electricity costs for the first six months of the year. Management think that electricity costs are likely to be related to how long machines are running. Month Machinehours ElectricityCost January 2,800 $2,925 February 5,600 $5,526 March 6,200 $5,980 April 3,500 $3,620 May 2,300 $2,470 June 4,500 $4,450 You may wish to refer to the formula sheet to answer this question. If you haven't already downloaded it, you can download it here. Required: Using the high-low method, (a) calculate the variable cost
Silver Products has presented the following information for the past eight months operations: Month Units Total Cost $ 27,600 $ 26,000 $ 18,500 $ 23,400 $ 26,200 $ 31,150 $ 26,700 $ 25,900 April 8,100 6,500 3,900 5,700 7,100 8,500 7,900 6,900 Мay June July August September October November a. Using the high-low method, calculate the fixed cost per month and variable cost per unit. (Round your variable cost to 2 decimal places.) Fixed Cost Per Month Variable Cost Per Unit b. What would total costs be for a month with 5,100 units produced? (Do not round intermediate calculations.) Total Costs