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: Fixed Cost Cost per Car per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Washed $ 0.50 $ 1,000 $ 0.06 $ 0.10 $ 4,600 $ 0.20 $ 8,400 $ 2,000 $ 1,500 $ 0.01 For example, electricity costs are $1,000 per month plus $0.06 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.40 per car washed. Required: Prepare the company's planning budget for August. Lavage Rapide Planning Budget For the Month Ended August 31 Budgeted cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 0 $ 0

Principles of Accounting Volume 2
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ISBN:9781947172609
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Chapter2: Building Blocks Of Managerial Accounting
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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:
Fixed Cost Cost per Car
per Month
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
Washed
$ 0.50
$ 1,000
$ 0.06
$ 0.10
$ 4,600
$ 0.20
$ 8,400
$ 2,000
$
1,500
$ 0.01
For example, electricity costs are $1,000 per month plus $0.06 per car washed. The company expects to
wash 8,100 cars in August and to collect an average of $6.40 per car washed.
Required:
Prepare the company's planning budget for August.
Lavage Rapide
Planning Budget
For the Month Ended August 31
Budgeted cars washed
Revenue
Expenses:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
Total expense
Net operating income
0
$
0
Transcribed Image Text: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: Fixed Cost Cost per Car per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Washed $ 0.50 $ 1,000 $ 0.06 $ 0.10 $ 4,600 $ 0.20 $ 8,400 $ 2,000 $ 1,500 $ 0.01 For example, electricity costs are $1,000 per month plus $0.06 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.40 per car washed. Required: Prepare the company's planning budget for August. Lavage Rapide Planning Budget For the Month Ended August 31 Budgeted cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 0 $ 0
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