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 Administrative expenses $ 0.03 For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $5.90 per car washed. The actual operating results for August are as follows: Rent Actual cars washed Revenue Lavage Rapide Income Statement For the Month Ended August 31 Expenses: cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost per Cost per Month Car Washed $ 0.70 $ 1,100 $ 0.08 $ 0.30 $ 4,900 $ 0.20 $ 8,200 $ 2,200 $ 1,700 Administrative expenses Total expense Net operating income 8,500 $ 51,660 6,380 1,742 2,760 6,940 8,200 2,400 1,852 30,274 $ 21,386 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., zere 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 Wages and salaries Depreciation Administrative expenses $ 0.03 For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $5.90 per car washed. The actual operating results for August are as follows: Rent Actual cars washed Revenue Lavage Rapide Income Statement For the Month Ended August 31 Expenses: cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost per Cost per Month Car Washed $ 0.70 $ 1,100 $ 0.08 $ 0.30 $ 4,900 $ 0.20 $ 8,200 $ 2,200 $ 1,700 Administrative expenses Total expense Net operating income 8,500 $ 51,660 6,380 1,742 2,760 6,940 8,200 2,400 1,852 30,274 $ 21,386 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., zere variance). Input all amounts as positive values.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please do not give solution in image format thanku
![Net operating income
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.)
Cars washed
Revenue
Expenses:
Cleaning supplies
Electricity
Maintenance.
Wages and salaries
Depreciation
Rent
Administrative expenses
Total expense
Net operating income
$ 21,386
Lavage Rapide
Flexible Budget Performance Report
For the Month Ended August 31
Actual
Results
8,500
$ 51,660
6,380
1,742
2,760
6,940
8,200
2,400
1,852
30,274
$ 21,386
Flexible
Budget.
Planning.
Budget](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1eaae1fc-ed33-449b-be0f-97d8c49ba64f%2F35db6131-d9f9-44d4-b6d8-b305d8a85d81%2Fmwif2dw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Net operating income
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.)
Cars washed
Revenue
Expenses:
Cleaning supplies
Electricity
Maintenance.
Wages and salaries
Depreciation
Rent
Administrative expenses
Total expense
Net operating income
$ 21,386
Lavage Rapide
Flexible Budget Performance Report
For the Month Ended August 31
Actual
Results
8,500
$ 51,660
6,380
1,742
2,760
6,940
8,200
2,400
1,852
30,274
$ 21,386
Flexible
Budget.
Planning.
Budget
![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
Actual cars washed
Wages and salaries.
Depreciation
Administrative expenses
$ 0.03
For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in
August and to collect an average of $5.90 per car washed.
The actual operating results for August are as follows:
Revenue
Expenses:
Lavage Rapide
Income Statement
For the Month Ended August 31
Cleaning supplies
Electricity
Maintenance
Wages and salaries.
Depreciation
Fixed
Cost per
Month
Rent
$ 1,100.
Administrative expenses
Total expense
Net operating income.
$ 4,900
$ 8,200
$ 2,200
$ 1,700
Cost per
Car Washed
$ 0.70
8,500
$51,660
6,380
1,742
$ 0.08
$ 0.30
$ 0.20
2,760
6,940
8,200
2,400
1,852
30,274
$ 21,386
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.)
www](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1eaae1fc-ed33-449b-be0f-97d8c49ba64f%2F35db6131-d9f9-44d4-b6d8-b305d8a85d81%2F8zg1kc5_processed.jpeg&w=3840&q=75)
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
Actual cars washed
Wages and salaries.
Depreciation
Administrative expenses
$ 0.03
For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in
August and to collect an average of $5.90 per car washed.
The actual operating results for August are as follows:
Revenue
Expenses:
Lavage Rapide
Income Statement
For the Month Ended August 31
Cleaning supplies
Electricity
Maintenance
Wages and salaries.
Depreciation
Fixed
Cost per
Month
Rent
$ 1,100.
Administrative expenses
Total expense
Net operating income.
$ 4,900
$ 8,200
$ 2,200
$ 1,700
Cost per
Car Washed
$ 0.70
8,500
$51,660
6,380
1,742
$ 0.08
$ 0.30
$ 0.20
2,760
6,940
8,200
2,400
1,852
30,274
$ 21,386
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.)
www
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