Exercise 9-10 (Static) Flexible Budget [LO9-1]Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following tableprovides estimates concerning the company's costs:Cleaning supplienElectricityMaintenanceWages and salariesDepreciationAdministrative expensesRentFixedcost perMonth$ 1,200$5,000$6,000$8,000$4,000Cost perCar Washed$0.80$ 0.15$0.20$0.30$ 0.10For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company actually washed 8,800 cars inAugust and collected an average of $4.90 per car washed.Required:Prepare the company's flexible budget for August

Variable cost is the cost that changes with change in the activity of cost driver used. The variable…

Exercise 9-10 (Static) 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 Fixed cost per Month $ 1,200 $5,000 $6,000 $ 0.000 $4,000 Rent Cost per Car Washed $0.80 $ 0.15 $0.20 $0.30 Wages and salaries Depreciation Administrative expenses For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company actually washed 8,800 cars in August and collected an average of $4.90 per car washed. $0.10 Required: Prepare the company's flexible budget for August

Exercise 9-10 (Static) 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 Fixed cost per Month $ 1,200 $5,000 $6,000 $ 0.000 $4,000 Rent Cost per Car Washed $0.80 $ 0.15 $0.20 $0.30 Wages and salaries Depreciation Administrative expenses For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company actually washed 8,800 cars in August and collected an average of $4.90 per car washed. $0.10 Required: Prepare the company's flexible budget for August

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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Saved 7 Exercise 9-7 (Algo) Flexible Budgets and Activity Variances [LO9-1, LO9-2] Jake's Roof Repair has provided the following data concerning its costs: 1 points Wages and salaries Fixed Cost Cost per per Month Repair-Hour Parts and supplies Equipment depreciation $ 21,300 $ 15.00 $ 7.60 $ 2,730 eBook Truck operating expenses Rent $ 0.55 $ 5,710 $ 1.80 $ 4,680 $ 3,890 $ 0.50 Hint References Administrative expenses For example, wages and salaries should be $21,300 plus $15.00 per repair-hour. The company expected to work 2,500 repair-hours in May, but actually worked 2,400 repair-hours. The company expects its sales to be $50.00 per repair-hour. Required: Compute the company's activity variances for May. (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.) Jake's Roof Repair Activity Variances For the Month Ended May 31 Mc Revenue Expenses: Wages and salaries…
EXERCISE 9-9 Planning 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: Fixed Cost Cost per per Month Car Washed $0.80 $0.15 $0.20 $0.30 Cleaning supplies ... Electricity $1,200 Maintenance Wages and salaries Depreciation Rent Administrative expenses. $5,000 $6,000 $8,000 $4,000 $0.10 For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. Required: Using Exhibit 9-2 as your guide, prepare the company's planning budget for August.
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Problem 13-56 (Algo) Prepare a Production Budget (LO 13-4) Haggstrom, Inc., manufactures steel fittings. Each fitting requires both steel and an alloy that allows the fitting to be used under extreme conditions. The following data apply to the production of the fittings. Direct materials per unit 3 pounds of steel at $0.55 per pound 0.5 pounds of alloy at $1.60 per pound Direct labor per unit 0.02 hours at $20 per hour Overhead per unit Indirect materials $ 0.55 Indirect labor 0.70 Utilities 0.45 Plant and equipment depreciation 0.90 Miscellaneous 0.75 Total overhead per unit $ 3.35 The plant and equipment depreciation and miscellaneous costs are fixed and are based on production of 250,000 units annually. All other costs are variable. Plant capacity is 300,000 units annually. All other overhead costs are variable. The following are forecast for year 2. Contract negotiations with the union are expected…
Exercise 9-12 (Algo) Revenue and Spending Variances [LO9-3] 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 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance For example, electricity costs should be $1,200 per month plus $0.07 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.80 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Wages and salaries Depreciation Rent Fixed Cost per Month $ 1,200 $4,700 $ 8,100 $ 1,900 $ 1,700 Administrative expenses Total expense Net operating income Cost per Car Washed $ 0.50 $ 0.07 $0.20 $ 0.20 8,300 $ 57,860 4,600 1,744 $ 0.03 1,880 6,700 8,100 2,100 1,846 26,970 $…