Exercise 9-10 (Algo) Flexible Budget [LO9-1] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Administrative expenses Rent For example, electricity costs should be $1,100 per month plus $0.10 per car washed. The company actually washed 8,200 cars in August and collected an average of $6.80 per car washed. Lavage Rapide Flexible Budget For the Month Ended August 31 Budgeted cars washed Revenue Expenses: Required: Prepare the company's flexible budget for August. Rent Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Total expense Net operating income Fixed Cost per Month $ 1,100 $ 4,400 $ 8,000 $ 1,800 $ 1,400 $ $ 8,200 55,760 Cost per Car Washed 0 $ 0.50 $ 0.10 $ 0.20 $ 0.20 55,760 $ 0.02
Exercise 9-10 (Algo) Flexible Budget [LO9-1] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Administrative expenses Rent For example, electricity costs should be $1,100 per month plus $0.10 per car washed. The company actually washed 8,200 cars in August and collected an average of $6.80 per car washed. Lavage Rapide Flexible Budget For the Month Ended August 31 Budgeted cars washed Revenue Expenses: Required: Prepare the company's flexible budget for August. Rent Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Total expense Net operating income Fixed Cost per Month $ 1,100 $ 4,400 $ 8,000 $ 1,800 $ 1,400 $ $ 8,200 55,760 Cost per Car Washed 0 $ 0.50 $ 0.10 $ 0.20 $ 0.20 55,760 $ 0.02
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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![Exercise 9-10 (Algo) Flexible Budget [LO9-1]
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near
Montreal. The following table provides estimates concerning the company's costs:
Cleaning supplies
Electricity
Maintenance
Wages and salaries.
Depreciation
Administrative expenses
Rent
For example, electricity costs should be $1,100 per month plus $0.10 per car washed. The company
actually washed 8,200 cars in August and collected an average of $6.80 per car washed.
Lavage Rapide
Flexible Budget
For the Month Ended August 31
Budgeted cars washed
Revenue
Expenses:
Required:
Prepare the company's flexible budget for August.
Rent
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Administrative expenses
Total expense
Net operating income
Fixed
Cost per
Month
$ 1,100
$ 4,400
$ 8,000
$ 1,800
$ 1,400
$
$
8,200
55,760
Cost per
Car Washed
0
$ 0.50
$ 0.10
$ 0.20
$ 0.20
55,760
$ 0.02](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F22da4f3b-2612-43b0-ae2f-5b16aef8bb60%2F91f4b950-8356-45cf-864c-80226f9bb915%2Fchf10hp_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 9-10 (Algo) Flexible Budget [LO9-1]
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near
Montreal. The following table provides estimates concerning the company's costs:
Cleaning supplies
Electricity
Maintenance
Wages and salaries.
Depreciation
Administrative expenses
Rent
For example, electricity costs should be $1,100 per month plus $0.10 per car washed. The company
actually washed 8,200 cars in August and collected an average of $6.80 per car washed.
Lavage Rapide
Flexible Budget
For the Month Ended August 31
Budgeted cars washed
Revenue
Expenses:
Required:
Prepare the company's flexible budget for August.
Rent
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Administrative expenses
Total expense
Net operating income
Fixed
Cost per
Month
$ 1,100
$ 4,400
$ 8,000
$ 1,800
$ 1,400
$
$
8,200
55,760
Cost per
Car Washed
0
$ 0.50
$ 0.10
$ 0.20
$ 0.20
55,760
$ 0.02
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