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:FixedCost perMonthCost perCar WashedCleaning supplies$ 0.60Electricity$ 1,400$ 0.07Maintenance$ 0.15Wages and salaries$ 4,600$ 0.20Depreciation$ 8,200Rent$ 2,000Administrative expenses$ 1,400$ 0.02For example, electricity costs should be $1,400 per month plus $0.07 per car washed. The company expects to wash 8,100 cars inAugust and to collect an average of $6.40 per car washed. The company actually washed 8,200 cars in August.Required:Calculate the company's activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)Lavage RapideActivity VariancesFor the Month Ended August 31RevenueExpenses:Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentAdministrative expensesTotal expenseNet operating income

Every spending variation should be compared to the assumptions that were utilized to create the…

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 Fixed Cost per Month $ 1.400 Cost per Car Washed $ 0.60 $0.07

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 Fixed Cost per Month $ 1.400 Cost per Car Washed $ 0.60 $0.07

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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