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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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Actual cars washed For the Month Ended August 31 Revenue Expenses: For example, electricity costs are $1,500 per month plus $0.09 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.60 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement Cleaning supplies Electricity Maintenance Fixed Cost per Month Wages and salaries Depreciation Rent $1,500 $4,100 $8,500 $2,000 $1,600 Administrative expenses Total expense Net operating income 8,200 $ 55,560 Cost per Car Washed $0.70 $0.09 $0.10 $0.30 6,170 2,199 1,050 6,899 8,500 2,200 1,824 28,833 $ 26,727 $0.04 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 varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (Le., zero varlance). Input all amounts as positive values.) Lavage Ranida

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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Actual cars washed For the Month Ended August 31 Revenue Expenses: For example, electricity costs are $1,500 per month plus $0.09 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.60 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement Cleaning supplies Electricity Maintenance Fixed Cost per Month Wages and salaries Depreciation Rent $1,500 $4,100 $8,500 $2,000 $1,600 Administrative expenses Total expense Net operating income 8,200 $ 55,560 Cost per Car Washed $0.70 $0.09 $0.10 $0.30 6,170 2,199 1,050 6,899 8,500 2,200 1,824 28,833 $ 26,727 $0.04 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 varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (Le., zero varlance). Input all amounts as positive values.) Lavage Ranida

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 data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Actual cars washed Revenue Expenses: For the Month Ended August 31 Lavage Rapide Income Statement Cleaning supplies Electricity Maintenance For example, electricity costs are $1,500 per month plus $0.09 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.60 per car washed. The actual operating results for August are as follows: Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Cars washed Revenue Expenses: Fixed Cost per Month $1,500 $4,100 $8,500 $2,000 $1,600 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 8,200 $ 55,560 6,170 2,199 1,050 6,899 8,500 2,200 1,824 28,833 $ 26,727 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 (1.e., zero varlance). Input all amounts as positive values.) Actual Results Cost per Car Washed 8,200 $0.70 $0.09 $ 55,560 $0.10 $0.30 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 6,170 2,199 1,050 6,890 8,500 2,200 1,824 28,833 $ 26,727 $0.04 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 data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Actual cars washed Revenue Expenses: For the Month Ended August 31 Lavage Rapide Income Statement Cleaning supplies Electricity Maintenance For example, electricity costs are $1,500 per month plus $0.09 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.60 per car washed. The actual operating results for August are as follows: Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Cars washed Revenue Expenses: Fixed Cost per Month $1,500 $4,100 $8,500 $2,000 $1,600 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 8,200 $ 55,560 6,170 2,199 1,050 6,899 8,500 2,200 1,824 28,833 $ 26,727 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 (1.e., zero varlance). Input all amounts as positive values.) Actual Results Cost per Car Washed 8,200 $0.70 $0.09 $ 55,560 $0.10 $0.30 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 6,170 2,199 1,050 6,890 8,500 2,200 1,824 28,833 $ 26,727 $0.04 Flexible Budget Planning Budget
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