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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Haresh
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6e1fe070-26c7-4fa2-8c73-cf61e3d545b9%2F2c3c798e-c26b-4a15-aa53-ad173ae3059f%2F7auxp6q_processed.jpeg&w=3840&q=75)
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education