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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 $ 0.02 For example, electricity costs should be $1,500 per month plus $0.07 per car washed. The company expects to wash 8,100 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 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost Cost per per Month Car Washed $ 1,500 $ 0.70 $0.07 $ 0.15 $ 4,000 $ 0.30 $ 8,400 For the Month Ended August 31 Administrative expenses Total expense Net operating income Required: $ 2,100 $ 1,500 8,200 $ 57,180 6,170 2,037 1,455 6,790 8,400 2,300 1,562 28,714 $ 28,466

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 $ 0.02 For example, electricity costs should be $1,500 per month plus $0.07 per car washed. The company expects to wash 8,100 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 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost Cost per per Month Car Washed $ 1,500 $ 0.70 $0.07 $ 0.15 $ 4,000 $ 0.30 $ 8,400 For the Month Ended August 31 Administrative expenses Total expense Net operating income Required: $ 2,100 $ 1,500 8,200 $ 57,180 6,170 2,037 1,455 6,790 8,400 2,300 1,562 28,714 $ 28,466

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 Rent Wages and salaries Depreciation Administrative expenses $ 0.02 For example, electricity costs should be $1,500 per month plus $0.07 per car washed. The company expects to wash 8,100 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 Actual cars washed Revenue Expenses: For the Month Ended August 31 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost per Month $ 1,500 $ 4,000 $ 8,400 $ 2,100 $ 1,500 Administrative expenses Total expense Net operating income Cars washed Revenue Cost per Car Washed $ 0.70 8,200 $ 57,180 Actual Results 6,170 2,037 1,455 6,790 8,400 2,300 1,562 28,714 $ 28,466 Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity 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.) $ 0.07 $ 0.15 $ 0.30 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 8,200 $ 57,180 Flexible Budget Planning Budget
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 Rent Wages and salaries Depreciation Administrative expenses $ 0.02 For example, electricity costs should be $1,500 per month plus $0.07 per car washed. The company expects to wash 8,100 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 Actual cars washed Revenue Expenses: For the Month Ended August 31 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost per Month $ 1,500 $ 4,000 $ 8,400 $ 2,100 $ 1,500 Administrative expenses Total expense Net operating income Cars washed Revenue Cost per Car Washed $ 0.70 8,200 $ 57,180 Actual Results 6,170 2,037 1,455 6,790 8,400 2,300 1,562 28,714 $ 28,466 Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity 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.) $ 0.07 $ 0.15 $ 0.30 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 8,200 $ 57,180 Flexible Budget Planning Budget
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