Exercise 9-13 (Algo) Prepare a Flexible Budget Performance Report [LO9-4] Lovage 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 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 0.50 $ 1,200 $ 0.10 $ 0,25 $ 4,800 $ 0.40 $ 8,400 $ 2,100 $ 1,800 $ 0.02 For example, electricity costs should be $1,200 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.40 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: 8,400 $ 55,220 4,650 2,000 2,315 8,480 8,400 2,300 1.866 30.011 $ 25,209 Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity 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 varlance). Input all amounts as positive values. Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Cars washed Revenue Actual Results 8,400 $ 55.220 Expenses Cleaning supplies 4,650 Electricity 2.000 Maintenance 2.315 Wages and salaries 8,480 Depreciation 8,400 Rent 2.300 Administrative expenses 1,866 Total expense 30.011 Net operating income $ 25,209 Flexible Budget Planning Budget
Exercise 9-13 (Algo) Prepare a Flexible Budget Performance Report [LO9-4] Lovage 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 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 0.50 $ 1,200 $ 0.10 $ 0,25 $ 4,800 $ 0.40 $ 8,400 $ 2,100 $ 1,800 $ 0.02 For example, electricity costs should be $1,200 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.40 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: 8,400 $ 55,220 4,650 2,000 2,315 8,480 8,400 2,300 1.866 30.011 $ 25,209 Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity 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 varlance). Input all amounts as positive values. Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Cars washed Revenue Actual Results 8,400 $ 55.220 Expenses Cleaning supplies 4,650 Electricity 2.000 Maintenance 2.315 Wages and salaries 8,480 Depreciation 8,400 Rent 2.300 Administrative expenses 1,866 Total expense 30.011 Net operating income $ 25,209 Flexible Budget Planning Budget
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 9-13 (Algo) Prepare a Flexible Budget Performance Report [LO9-4]
Lovage 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
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
$ 0.50
$ 1,200
$ 0.10
$ 0,25
$ 4,800
$ 0.40
$ 8,400
$ 2,100
$ 1,800
$ 0.02
For example, electricity costs should be $1,200 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in
August and to collect an average of $6.40 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:
8,400
$ 55,220
4,650
2,000
2,315
8,480
8,400
2,300
1.866
30.011
$ 25,209
Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity 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
varlance). Input all amounts as positive values.
Lavage Rapide
Flexible Budget Performance Report
For the Month Ended August 31
Cars washed
Revenue
Actual
Results
8,400
$
55.220
Expenses
Cleaning supplies
4,650
Electricity
2.000
Maintenance
2.315
Wages and salaries
8,480
Depreciation
8,400
Rent
2.300
Administrative expenses
1,866
Total expense
30.011
Net operating income
$
25,209
Flexible
Budget
Planning
Budget
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Transcribed Image Text:Exercise 9-13 (Algo) Prepare a Flexible Budget Performance Report [LO9-4]
Lovage 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
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
$ 0.50
$ 1,200
$ 0.10
$ 0,25
$ 4,800
$ 0.40
$ 8,400
$ 2,100
$ 1,800
$ 0.02
For example, electricity costs should be $1,200 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in
August and to collect an average of $6.40 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:
8,400
$ 55,220
4,650
2,000
2,315
8,480
8,400
2,300
1.866
30.011
$ 25,209
Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity 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
varlance). Input all amounts as positive values.
Lavage Rapide
Flexible Budget Performance Report
For the Month Ended August 31
Cars washed
Revenue
Actual
Results
8,400
$
55.220
Expenses
Cleaning supplies
4,650
Electricity
2.000
Maintenance
2.315
Wages and salaries
8,480
Depreciation
8,400
Rent
2.300
Administrative expenses
1,866
Total expense
30.011
Net operating income
$
25,209
Flexible
Budget
Planning
Budget
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