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 per Month Cost per Car Washed $ 0.70 $ 1,200 $ 0.08 $ 0.20 $ 4,500 $ 0.30 $ 8,100 $ 2,200 $ 1,600 $ 0.03 For example, electricity costs are $1,200 per month plus $0.08 per car washed. The company actually washed 8,400 cars in August and collected an average of $6.60 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 Net operating income
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 per Month Cost per Car Washed $ 0.70 $ 1,200 $ 0.08 $ 0.20 $ 4,500 $ 0.30 $ 8,100 $ 2,200 $ 1,600 $ 0.03 For example, electricity costs are $1,200 per month plus $0.08 per car washed. The company actually washed 8,400 cars in August and collected an average of $6.60 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 Net operating income
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 7CE: Refer to Cornerstone Exercise 8.6. Required: 1. Calculate the total budgeted cost of units produced...
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![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:
Cost per
Car Washed
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
Fixed Cost
per Month
$ 0.70
$ 1,200
$ 0.08
$ 0.20
$ 4,500
$ 0.30
$ 8,100
$ 2,200
$ 1,600
$ 0.03
For example, electricity costs are $1,200 per month plus $0.08 per car washed. The company actually washed 8,400 cars in August
and collected an average of $6.60 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
Net operating income](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F95d3cefa-f385-4533-bd54-0f229347f860%2F952ab601-fe69-4a97-acfe-eb7f7d0bacc9%2Fajvpxza_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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:
Cost per
Car Washed
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
Fixed Cost
per Month
$ 0.70
$ 1,200
$ 0.08
$ 0.20
$ 4,500
$ 0.30
$ 8,100
$ 2,200
$ 1,600
$ 0.03
For example, electricity costs are $1,200 per month plus $0.08 per car washed. The company actually washed 8,400 cars in August
and collected an average of $6.60 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
Net operating income
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