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: Fixed Cost Cost per Car Washed $ 0.40 $ 0.10 $ 0. 20 $ 0.30 per Month Cleaning supplies Electricity $ 1,100 Maintenance $ 4,400 $ 8,500 $ 2,200 $ 1,600 Wages and salaries Depreciation Rent Administrative expenses $ 0.03 For example, electricity costs should be $1,100 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.70 per car washed. The company actually washed 8,400 cars in August. Required: Calculate the company's activity variances for August. (Indicate the effect of each variance by selecting "F" for favor able, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Lavage Rapide Activity Variances For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity…
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 $ 0.50 $ 0. 09 $ 0. 25 $ 0.30 per Month Cleaning supplies Electricity $ 1,100 Maintenance $ 4,800 $ 8,400 $ 1,900 $ 1,500 Wages and salaries Depreciation Rent Administrative expenses $ 0.04 For example, electricity costs should be $1,100 per month plus $0.09 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: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,500 $ 51,660 Revenue Expenses: Cleaning supplies Electricity 4,700 1,826 2,340 7,680 8,400 2,100 Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense 1,736 28,782 Net operating income $ 22,878 Required: Calculate the company's revenue and…
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 carwash facility near Montreal. The following table provides data concerning the company’s costs: Fixed Costper Month Cost perCar 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 are $1,200 per month plus $0.15 per car washed. The company expected to wash 9,000 cars in August and to collect an average of $4.90 per car washed. The actual operating results for August appear below. Lavage RapideIncome StatementFor the Month Ended August 31 Actual cars washed 8,800 Revenue $ 43,080 Expenses: Cleaning supplies 7,560…
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The ollowing table provides data concerning the company's costs: Fixed Cost Cost per per Month Car Washed $0.70 $0.08 $0.15 $0.40 Cleaning supplies Electricity Maintenance $1,100 Wages and salaries Depreciation $4,100 $8,000 $2,100 Rent Administrative $1,500 $0.02 expenses For example, electricity costs are $1,100 per month plus $0.08 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.40 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 8,200 Revenue $53,940 Expenses: Cleaning supplies Electricity Maintenance 6,170 1,718 1,455 7,700 8,000 2,300 Wages and salaries Depreciation Rent Administrative 1,562 expenses Total expense 28,905 Net operating income $25,035 Required: Calculate the company's revenue and spending variances for…
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: Fixed Cost Cost per per Month Car Washed $ 0.60 $ 0.05 $ 0.25 $ 0.20 Cleaning supplies Electricity $ 1,100 Maintenance $ 4,900 $ 8,400 $ 2,000 $ 1,600 Wages and salaries Depreciation Rent Administrative expenses $ 0.04 For example, electricity costs are $1,100 per month plus $0.05 per car washed. The company actually washed 8,100 cars in August and collected an average of $6.70 per car washed.
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…
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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 estimates concerning the company’s costs: Fixed Costper Month Cost perCar 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 actually washed 8,800 cars in August and collected an average of $4.90 per car washed. Required: Prepare the company’s flexible budget for August.

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