Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Rent Administrative expenses For Actual cars washed Revenue Expenses: 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: Cleaning supplies Electricity Maintenance Lavage Rapide Income Statement the Month Ended August 31 Wages and salaries Depreciation Rent 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 $ 0.08 $ 0.10 $ 0.30 8,500 $53,340 6,380 1,842 1,080 6,880 $ 0.04 8,100 2,200 1,936 28,418 $ 24,922 Required: Calculate the company's revenue and spending variances for August. Check my wo
Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Rent Administrative expenses For Actual cars washed Revenue Expenses: 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: Cleaning supplies Electricity Maintenance Lavage Rapide Income Statement the Month Ended August 31 Wages and salaries Depreciation Rent 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 $ 0.08 $ 0.10 $ 0.30 8,500 $53,340 6,380 1,842 1,080 6,880 $ 0.04 8,100 2,200 1,936 28,418 $ 24,922 Required: Calculate the company's revenue and spending variances for August. Check my wo
Chapter4: Preparing And Using Financial Statements
Section: Chapter Questions
Problem 2EP
Related questions
Question
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8349c200-992a-4f4b-9946-1f0a11136231%2Fa1beb15c-b981-41a5-b04a-547527ba5dab%2F6bwguto_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
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