Exercise 9-8 (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 data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost Cost per Car per Month Washed $ 0.50 $ 1,200 $ 0.06 $ 0.25 $ 4,800 $ 0.40 $ 8,400 $ 2,000 $1,600 $ 0.02 For example, electricity costs are $1,200 per month plus $0.06 per car washed. The company actually washed 8,200 cars in August and collected an average of $6.20 per car washed. Required: Prepare the company's flexible budget for August. Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense 0 Net operating income $ 0

Exercise 9-8 (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 data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost Cost per Car per Month Washed $ 0.50 $ 1,200 $ 0.06 $ 0.25 $ 4,800 $ 0.40 $ 8,400 $ 2,000 $1,600 $ 0.02 For example, electricity costs are $1,200 per month plus $0.06 per car washed. The company actually washed 8,200 cars in August and collected an average of $6.20 per car washed. Required: Prepare the company's flexible budget for August. Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense 0 Net operating income $ 0

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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Exercise 9-3 (Algo) Revenue and Spending Varlances [LO9-3] Quilcene Oysterla farms and sells oysters In the Pacific Northwest. The company harvested and sold 7,500 pounds of oysters In August. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (9) 7,500 $ 30,75e Revenue ($4.10g) Expenses: Packing supplies ($0.25q) Oyster bed naintenance ($3,000) Wages and salaries ($2,6G00 + se.309) Shipping ($e.55g) Utilities ($1,270) other ($460 + se.014) Total expernse 1,875 3,000 4,85e 4,125 1,270 535 15,655 $ 15,095 Net operating income The actual results for August were as follows: Quilcene Oysteria Income Statenent For the Month Ended August 31 Actual pournds 7.500 Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Uulities $27,400 2, 045 2,860 5,260 3,855 1, 080 1,155 16, 255 other Total expense Net operating incone $ 11,145 Required: Calculate the company's revenue and spending…
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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 $…
es Exercise 9-5 (Algo) Prepare a Flexible Budget with More Than One Cost Driver [LO9-5] Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier. Management identified two cost drivers for budgeting purposes-the number of cruises and the number of passengers. The company publishes a schedule of day cruises that it may supplement with special sailings if there is sufficient demand. Up to 90 passengers can be accommodated on the tour boat. Data concerning the company's cost formulas appear below: Fixed Cost per Cost per Month Cruise Vessel operating costs Advertising $ 6,200 $ 478.00 Cost per Passenger $ 3.10 $ 2,400 $ 5,100 $ 3,900 $ 31.00 $ 1.50 Administrative costs Insurance For example, vessel operating costs should be $6,200 per month plus $478.00 per cruise plus $3.10 per passenger. The company's sales should average $29.00 per passenger. In July, the company provided 60 cruises for a total of 3,150 passengers. Required: Prepare the company's…