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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 Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses: $ 0.05 For example, electricity costs are $1,300 per month plus $0.07 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.40 per car washed. The actual operating results for August are as follows: Cleaning supplies Electricity Maintenance Fixed Cost per Cost per Car Month Washed Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income $ 1,300 $ 5,000 $8,400 $1,800 $ 1,700 8,500 $ 55,860 6,380 1,858 1,500 7,880 $0.70 $ 0.07 $0.15 $0.30 8,400 2,000 2,020 30,038 $25 822

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 Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses: $ 0.05 For example, electricity costs are $1,300 per month plus $0.07 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.40 per car washed. The actual operating results for August are as follows: Cleaning supplies Electricity Maintenance Fixed Cost per Cost per Car Month Washed Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income $ 1,300 $ 5,000 $8,400 $1,800 $ 1,700 8,500 $ 55,860 6,380 1,858 1,500 7,880 $0.70 $ 0.07 $0.15 $0.30 8,400 2,000 2,020 30,038 $25 822

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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. Do not round intermediate calculations.) Revenue Expenses: Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income
Transcribed Image Text: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. Do not round intermediate calculations.) Revenue Expenses: Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income
Exercise 9-9 (Algo) Prepare a Report Showing Revenue and Spending Variances [LO9-2] 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 Lavage Rapide Income Statement Actual cars washed Revenue Expenses: For example, electricity costs are $1,300 per month plus $0.07 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.40 per car washed. The actual operating results for August are as follows: For the Month Ended August 31 Cleaning supplies. Electricity Maintenance Rent Wages and salaries Depreciation Fixed Cost per Cost per Car Month Washed $ 1,300 $ 5,000 $ 8,400 Administrative expenses Total expense Net operating income $ 1,800 $ 1,700 8,500 $ 55,860 $ 0.70 $ 0.07 $ 0.15 $0.30 6,380 1,858 1,500 7,880 8,400 2,000 2,020 30,038 $ 25,822 $ 0.05
Transcribed Image Text:Exercise 9-9 (Algo) Prepare a Report Showing Revenue and Spending Variances [LO9-2] 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 Lavage Rapide Income Statement Actual cars washed Revenue Expenses: For example, electricity costs are $1,300 per month plus $0.07 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.40 per car washed. The actual operating results for August are as follows: For the Month Ended August 31 Cleaning supplies. Electricity Maintenance Rent Wages and salaries Depreciation Fixed Cost per Cost per Car Month Washed $ 1,300 $ 5,000 $ 8,400 Administrative expenses Total expense Net operating income $ 1,800 $ 1,700 8,500 $ 55,860 $ 0.70 $ 0.07 $ 0.15 $0.30 6,380 1,858 1,500 7,880 8,400 2,000 2,020 30,038 $ 25,822 $ 0.05
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