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 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expects to wash 8,200 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 For the Month Ended August 31 Rent Administrative expenses Total expense Net operating income Fixed Cost per Month $1,300 $5,000 $8,500 $2,200 $1,800 Revenue Expenses: 8,300 $ 56,220 5,420 2,008 2,290 7,820 8,500 2,400 2,028 30,466 $ 25,754 Cost per Car Washed Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 $0.60 $0.09 $0.25 $0.30 Required: Calculate the company's revenue and spending 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.) TI $0.04
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 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expects to wash 8,200 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 For the Month Ended August 31 Rent Administrative expenses Total expense Net operating income Fixed Cost per Month $1,300 $5,000 $8,500 $2,200 $1,800 Revenue Expenses: 8,300 $ 56,220 5,420 2,008 2,290 7,820 8,500 2,400 2,028 30,466 $ 25,754 Cost per Car Washed Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 $0.60 $0.09 $0.25 $0.30 Required: Calculate the company's revenue and spending 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.) TI $0.04
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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don't imae formet
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
Lavage Rapide
Income Statement
For the Month Ended August 31
Revenue
Expenses:
Cleaning supplies
Electricity
Maintenance
For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expects to wash 8,200 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
Fixed Cost
per Month
$1,300
$5,000
$8,500
$2,200
$1,800
Revenue
Expenses:
Cleaning supplies
Flectricity
8,300
$ 56,220
5,420
2,008
2,290
7,820
8,500
2,400
2,028
30,466
$ 25,754
Lavage Rapide
Revenue and Spending Variances
For the Month Ended August 31
Required:
Calculate the company's revenue and spending 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.)
Cost per
Car Washed
F
$0.60
$0.09
$0.25
$0.30
U
39 F
$0.04
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