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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 estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Depreciation Rent Administrative expenses Lavage Rapide Income Statement Wages and salaries $5,000 $ 6,000 $ 8,000 $ 4,000 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. The actual operating results for August are as follows: $ 1,200 Fixed Cost per Month For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Rent Wages and salaries Depreciation Administrative expenses Total expense Net operating income Cost per Car Washed $ 0.80 $0.15 $ 0.20 $ 0.30 $ 0.10 8,800 $43,080 7,560 2,670 2,260 8,500 6,000 8,000 4,950 39,940 $ 3,140 Required: Calculate the company's revenue and spending variances for August. (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.)

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 Depreciation Rent Administrative expenses Lavage Rapide Income Statement Wages and salaries $5,000 $ 6,000 $ 8,000 $ 4,000 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. The actual operating results for August are as follows: $ 1,200 Fixed Cost per Month For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Rent Wages and salaries Depreciation Administrative expenses Total expense Net operating income Cost per Car Washed $ 0.80 $0.15 $ 0.20 $ 0.30 $ 0.10 8,800 $43,080 7,560 2,670 2,260 8,500 6,000 8,000 4,950 39,940 $ 3,140 Required: Calculate the company's revenue and spending variances for August. (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.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Lavage Rapide Income Statement Fixed Cost per Month $ 1,200 $ 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. The actual operating results for August are as follows: For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Rent Wages and salaries Depreciation Administrative expenses Total expense Net operating income Cost per Car Washed $0.80 $ 0.15 $ 0.20 $ 0.30 8,800 $ 43,080 7,560 2,670 2,260 8,500 6,000 8,000 4,950 39,940 $ 3,140 Required: Calculate the company's revenue and spending variances for August. (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.)
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 estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Lavage Rapide Income Statement Fixed Cost per Month $ 1,200 $ 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. The actual operating results for August are as follows: For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Rent Wages and salaries Depreciation Administrative expenses Total expense Net operating income Cost per Car Washed $0.80 $ 0.15 $ 0.20 $ 0.30 8,800 $ 43,080 7,560 2,670 2,260 8,500 6,000 8,000 4,950 39,940 $ 3,140 Required: Calculate the company's revenue and spending variances for August. (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.)
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