Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Required: 2,080 2,265 6,280 8,100 2,000 1,905 27,990 $ 25,140 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. Do not round intermediate calculations. Answer is complete but not entirely correct. Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Revenue $ 2,100 ( Expenses: Cleaning supplies 440 U Electricity 40 F Maintenance 215 U Wages and salaries 340 U Depreciation None Rent Administrative expenses 105 F Total expense 975 U Net operating income $ 100,000 F Exercise 9-9 (Algo) Prepare a Report Showing Revenue and Spending Variances [LO9-2] Lavage Rapide owns and operates a large automatic car wash near Montreal. The following table provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Fixed Cost per Month $1,300 Cost per Car Washed $ 0.60 $ 0.10 $ 0.25 Wages and salaries Depreciation Rent Administrative expenses $ 4,300 $ 0.20 $ 8,100 $ 1,800 $ 1,600 $ 0.05 For example, electricity costs are $1,300 per month plus $0.10 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.30 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 $ 53,130 5,360 2,080 2,265 6,280 8,100 2,000 1,905 27,990 $ 25,140 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. Do not round intermediate calculations.

Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Required: 2,080 2,265 6,280 8,100 2,000 1,905 27,990 $ 25,140 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. Do not round intermediate calculations. Answer is complete but not entirely correct. Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Revenue $ 2,100 ( Expenses: Cleaning supplies 440 U Electricity 40 F Maintenance 215 U Wages and salaries 340 U Depreciation None Rent Administrative expenses 105 F Total expense 975 U Net operating income $ 100,000 F Exercise 9-9 (Algo) Prepare a Report Showing Revenue and Spending Variances [LO9-2] Lavage Rapide owns and operates a large automatic car wash near Montreal. The following table provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Fixed Cost per Month $1,300 Cost per Car Washed $ 0.60 $ 0.10 $ 0.25 Wages and salaries Depreciation Rent Administrative expenses $ 4,300 $ 0.20 $ 8,100 $ 1,800 $ 1,600 $ 0.05 For example, electricity costs are $1,300 per month plus $0.10 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.30 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 $ 53,130 5,360 2,080 2,265 6,280 8,100 2,000 1,905 27,990 $ 25,140 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. Do not round intermediate calculations.

Managerial Accounting

15th Edition

ISBN:9781337912020

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

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

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 3E

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