Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following tableprovides data concerning the company's costs:Cleaning suppliesElectricityMaintenanceRentWages and salaries.DepreciationAdministrative expenses$ 0.03For example, electricity costs are $1,300 per month plus $0.06 per car washed. The company actually washed 8,600 cars in Augustand collected an average of $6.10 per car washed.Actual cars washedRevenueExpenses:Required:Prepare the company's flexible budget for August.Cleaning suppliesElectricityMaintenanceAnswer is complete but not entirely correct.Lavage RapideFlexible BudgetFor the Month Ended August 31Wages and salariesDepreciationRentAdministrative expensesTotal expenseNet operating incomeFixed Cost Cost per Carper MonthWashed$0.40$ 0.06$0.15$0.30✓$1,300$ 4,500$ 8,100$$$ 2,000$ 1,3000x0x0x0x0x0x0x0x0x00

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 $ 0.03 For example, electricity costs are $1,300 per month plus $0.06 per car washed. The company actually washed 8,600 cars in August and collected an average of $6.10 per car washed. Required: Prepare the company's flexible budget for August. Actual cars washed Answer is complete but not entirely correct. Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost Cost per Car per Month Washed $ 1,300 $ 4,500 $ 8,100 Total expense Net operating income $ 2,000 $ 1,300 $ $ XX 0 $0.40 $ 0.06 $ 0.15 $ 0.30 0X 0x 0x 0x 0x 0 0x 0 0

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 $ 0.03 For example, electricity costs are $1,300 per month plus $0.06 per car washed. The company actually washed 8,600 cars in August and collected an average of $6.10 per car washed. Required: Prepare the company's flexible budget for August. Actual cars washed Answer is complete but not entirely correct. Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost Cost per Car per Month Washed $ 1,300 $ 4,500 $ 8,100 Total expense Net operating income $ 2,000 $ 1,300 $ $ XX 0 $0.40 $ 0.06 $ 0.15 $ 0.30 0X 0x 0x 0x 0x 0 0x 0 0

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EA: Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on...

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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 Administrative expenses Rent For example, electricity costs are $1,200 per month plus $0.09 per car washed. The company actually washed 8,400 cars in August and collected an average of $6.50 per car washed. Required: Prepare the company's flexible budget for August. Lavage Rapide Flexible Budget For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Fixed Cost per Month $ 1,200 $ 4,400 $ 8,000 $ 1,800 $ 1,600 Wages and salaries Depreciation Rent Cost per Car Washed $ 0.50 $ 0.09 $ 0.20 $ 0.20 Administrative expenses $ 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 Administrative expenses Rent For example, electricity costs are $1,200 per month plus $0.07 per car washed. The company actually washed 8,100 cars in August and collected an average of $6.10 per car washed. Required: Prepare the company's flexible budget for August Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Fixed Cost per Month $ 1,200 $ 4,400 $ 8,100 $ 1,900 $ 1,500 Rent Administrative expenses Total expense Net operating income S Cost per Car Washed $ 0.50 $ 0.07 $0.15 $ 0.30 0 0 $ 0.02
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
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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)
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)
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Ethan Manufacturing Incorporated produces floor mats for automobiles. The owner, Joseph Ethan, has asked you to assist in estimating maintenance costs. Together, you and Joseph determine that the single best cost driver for maintenance costs is machine hours. These data are from the previous fiscal year for maintenance costs and machine hours: Month Maintenance Costs Machine Hours 1 $ 2,780 1,870 2 2,940 1,950 3 3,090 2,030 4 3,200 2,050 5 3,280 2,080 6 3,250 2,060 7 3,190 2,040 8 3,030 2,020 9 2,800 1,880 10 2,400 1,280 11 2,410 1,480 12 2,630 1,770 Required: 1. What is the cost equation for maintenance costs using the high-low method? 2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1.
Ethan Manufacturing Inc. produces floor mats for automobiles. The owner, Joseph Ethan, has asked you to assist in estimating maintenance costs. Together, you and Joseph determine that the single best cost driver for maintenance costs is machine hours. These data are from the previous fiscal year for maintenance costs and machine hours: Month 1 2345 67 000 8 9 10 11 12 Maintenance Costs $ 2,740 2,900 3,050 3,160 3,240 3,210 3,150 2,990 2,760 2,360 2,370 2,590 Machine Hours 1,830 1,910 1,990 2,010 2,040 2,020 2,000 1,980 1,840 Required 1 Required 2 1,240 1,440 1,730 Required: 1. What is the cost equation for maintenance costs using the high-low method? 2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1. Complete this question by entering your answers in the tabs below. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1. (Do not round intermediate calculations, with the exception…