Please no handwriting and proper solution please without plagiarism 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:Cleaning supplies.ElectricityMaintenanceWages and salaries)DepreciationRentFixedCost per Cost perMonthCar Washed$ 0.50$ 1,100$ 0.07$ 0.25$ 4,300$0.40$ 8,200$ 2,000$ 1,600Administrative expenses$ 0.05For example, electricity costs should be $1,100 per month plus $0.07 per car washed. The company expects to wash 8,100 cars inAugust and to collect an average of $6.80 per car washed. The company actually washed 8,200 cars in August.Required:Calculate the company's activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Solution:Activity Variances for August :Flexible BudgetPlanning BudgetActivity VariancesCar 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: Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Administrative expenses Rent Fixed Cost per Month $ 1,100 $ 4,300 $ 8,200 $ 2,000 $ 1,600 Cost per Car Washed $ 0.50 $ 0.07 $ 0.25 $ 0.40 $ 0.05 For example, electricity costs should be $1,100 per month plus $0.07 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.80 per car washed. The company actually washed 8,200 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 zero variance) Innout 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 Rent Fixed Cost per Month $ 1,100 $ 4,300 $ 8,200 $ 2,000 $ 1,600 Cost per Car Washed $ 0.50 $ 0.07 $ 0.25 $ 0.40 $ 0.05 For example, electricity costs should be $1,100 per month plus $0.07 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.80 per car washed. The company actually washed 8,200 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 zero variance) Innout all amounts as positive values)

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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