Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following tableprovides estimates concerning the company's costs:FixedCost perMonthCost perCar WashedCleaning supplies$ 0.50Electricity$ 1,500$ 0.05Maintenance$ 0.10Wages and salaries$ 4,500$ 0.30Depreciation$ 8,100Rent$ 1,800Administrative expenses$ 1,600$ 0.03For example, electricity costs should be $1,500 per month plus $0.05 per car washed. The company actually washed 8,500 cars inAugust and collected an average of $6.50 per car washed.Required:Prepare the company's flexible budget for August.Lavage RapideFlexible BudgetFor the Month Ended August 31RevenueExpenses:Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentAdministrative expensesTotal expenseNet operating income

Step 1: The flexible budget for August for 8,500 care washed is prepared as follows:-…

Answered: Lavage Rapide is a Canadian company…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EB: Roper Furniture manufactures office furniture and tracks cost data across their process. The...

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Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following tabl provides estimates concerning the company's costs: Fixed Cost Cost per per Month Car Washed Cleaning supplies Electricity Maintenance $ 0.80 $ 0.15 $ 0.20 $ 0.30 $ 1,200 Wages and salaries Depreciation $ 5,000 $ 6,000 $ 8,000 $ 4,000 Rent Administrative expenses $ 0.10 For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. Required: Prepare the company's planning budget for August. Lavage Rapide Planning Budget For the MMonth Ended Auguet 31
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 Car Washed $ 0. 60 $ 0.06 $ 0. 20 $ 0.40 per Month Cleaning supplies Electricity $ 1,100 Maintenance $ 4,600 $ 8,000 $ 2,200 $ 1,500 Wages and salaries Depreciation Rent Administrative expenses $ 0.04 For example, electricity costs should be $1,100 per month plus $0.06 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.00 per car washed. Required: Prepare the company's planning budget for August Lavage Rapide Planning Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income
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 Rent Fixed Cost Cost per per Month Car Washed $ 1,000 $ 5,000 $ 8,200 $1,800 $ 1,600 $ 0.70 $ 0.05 $ 0.25 $ 0.20 $ 0.04 For example, electricity costs should be $1,000 per month plus $0.05 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $5.90 per car washed. The company actually washed 8,600 cars in August. Required: Calculate the company's activity variances for August. Note: 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 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 Car Washed $0.80 $0.15 $0.20 $0.30 per Month Cleaning supplies Electricity Maintenance $1,200 Wages and salaries Depreciation Rent Administrative expenses $5,000 $6,000 $8,000 $4,000 $0.10 For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 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 8,800 Revenue $ 43,080 Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent 7,560 2,670 2,260 8,500 6,000 8,000 4,950 39,940 $ 3,140 Administrative expenses Total expense Net operating income
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 per month Cost per car washed Cleaning supplies $0.40 Electricity $1,200 $0.08 Maintaince $0.25 Wages and salaries $4,000 $0.30 Depreciation $8,000 Rent $1,900 Administrative expenses $1,500 $0.03 For example, electricity costs should be $1,200 per month plus $0.08…
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 per Month Cost per Car Washed Cleaning supplies $ 0.80 Electricity $ 1,200 $0.15 Maintenance $ 0.20 Wages and salaries $5,000 $ 0.30 Depreciation $6,000 Rent $ 8,000 Administrative expenses $4,000 $ 0.10 For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 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 8,800 Revenue $ 43,080 Expenses: Cleaning supplies 7,560 Electricity 2,670 Maintenance 2,260 Wages and salaries 8,500 Depreciation 6,000 Rent 8,000 Administrative expenses 4,950 Total expense 39,940 Net operating income $3,140 Required: Calculate the company's revenue and spending…
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 per Month Cost per Car Washed Cleaning supplies $ 0.80 Electricity $ 1,200 $ 0.15 Maintenance $ 0.20 Wages and salaries $ 5,000 $ 0.30 Depreciation $ 6,000 Rent $ 8,000 Administrative expenses $ 4,000 $ 0.10 For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. The company actually washed 8,800 cars in August. Required: Calculate the company's 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.) Revenue Expenses: × Answer is complete but not entirely correct. Lavage Rapide Activity Variances For the Month Ended…
Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Variable expenses: Total variable expenses Fixed expenses: Fixed Cost per Month Total fixed expenses $1,600 4,900 8,500 2,300 2,000 The company expects to charge customers an average of $6.10 per car washed. Required: Prepare a flexible budget for October assuming either 9,000 or 10,000 cars are washed. AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Budgeted Amount Per Unit (per car) Cost per Car Washed $0.99 0.30 8.50 0.68 9,000 Cars Washed 0.07 10,000
Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Selling and administrative expenses ($45,000 per year) Rent on corporate office ($44,000 per year) Nails, glue, and other materials required to produce desks (varies per desk) Utilities expenses for production facility Sales staff commission (5% of gross sales)
Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur. Classify these costs as fixed or variable costs and as product or period costs. Lumber used to construct decks ($12.00 per square foot) Carpenter labor used to construct decks ($10 per hour) Construction supervisor salary ($45,000 per year) Depreciation on tools and equipment ($6,000 per year) Selling and administrative expenses ($35,000 per year) Rent on corporate office space ($34,000 per year) Nails, glue, and other materials required to construct deck (varies per job)
Steuben Company produces dog houses. During the current year, Steuben Company incurred the following costs: Rent on manufacturing facility Office manager's salary Wages of factory machine operators Depreciation on manufacturing equipment Insurance and taxes on selling and administrative offices Direct materials purchased and used Multiple Choice Based on the above information, the amount of period costs shown on Steuben's income statement is: O $70,000 $5,000 $186,000 $116,000 65,000 45,000 15,000 $65,000 5,000 75,000
Keller Company, a manufacturer of rivets, uses absorption costing Keller’s manufacturing costs were as follows: Direct materials and direct labor $800,000 Depreciation of machines 100,000 Rent for factory building 60,000 Electricity to run machine 35,000 How much of these costs should be inventoried? $800,000 $835,000 $935,000 $995,000

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