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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: Fixed Cost Cost per per Month Car Washed. Cleaning supplies Electricity $ 0.70 $ 1,300 $ 0.07 Maintenance $ 0.15 Wages and salaries $ 5,000 $ 0.30

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: Fixed Cost Cost per per Month Car Washed. Cleaning supplies Electricity $ 0.70 $ 1,300 $ 0.07 Maintenance $ 0.15 Wages and salaries $ 5,000 $ 0.30

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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Exercise 9-13 (Algo) Prepare a Flexible Budget Performance Report [LO9-4] 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 Fixed Cost Cost per per Month Car Washed $ 0.70 $ 1,300 $ 0.07 $ 0.15 $ 5,000 $ 0.30 $ 8,100 $ 2,100 $ 1,400 $ 0.05 For example, electricity costs should be $1,300 per month plus $0.07 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.00 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Required: 8,200 $ 50,700 6,170 1,837 1,455 7,790 8,100 2,300 1,705 29,357 $ 21,343 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.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Cars washed Revenue Actual Results 8,200 $ 50,700 Expenses: Cleaning supplies 6,170 Electricity 1,837 Maintenance 1,455 Wages and salaries 7,790 Depreciation 8,100 Rent 2,300 Administrative expenses 1,705 Total expense 29,357 Net operating income $ 21,343 Flexible Planning Budget Budget
Transcribed Image Text:Exercise 9-13 (Algo) Prepare a Flexible Budget Performance Report [LO9-4] 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 Fixed Cost Cost per per Month Car Washed $ 0.70 $ 1,300 $ 0.07 $ 0.15 $ 5,000 $ 0.30 $ 8,100 $ 2,100 $ 1,400 $ 0.05 For example, electricity costs should be $1,300 per month plus $0.07 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.00 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Required: 8,200 $ 50,700 6,170 1,837 1,455 7,790 8,100 2,300 1,705 29,357 $ 21,343 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.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Cars washed Revenue Actual Results 8,200 $ 50,700 Expenses: Cleaning supplies 6,170 Electricity 1,837 Maintenance 1,455 Wages and salaries 7,790 Depreciation 8,100 Rent 2,300 Administrative expenses 1,705 Total expense 29,357 Net operating income $ 21,343 Flexible Planning Budget Budget
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