Hanshaben 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 suppliesElectricityMaintenanceRentFixed Cost Cost per Carper MonthWashedWages and salariesDepreciationAdministrative expenses$ 0.02For example, electricity costs are $1,200 per month plus $0.09 per car washed. The company actually washed 8,400 cars in Augustand collected an average of $6.60 per car washed.Lavage RapideFlexible BudgetFor the Month Ended August 31$1,200$4,600$8,200$ 2,100$1,000Required:Prepare the company's flexible budget for August.Revenue$0.40$ 0.09$ 0.25$0.30

The flexible budget is prepared for actual level of production. The amounts are estimated using the…

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 Fixed Cost per Month $1,200 $4,600 $8,200 $2,100 $1,600 Cost per Car Mashed $0.40 30.09 $ 0.25 $0.30 $ 0.02 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 $6.60 per car washed. Required: Prepare the company's flexible budget for August

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 Fixed Cost per Month $1,200 $4,600 $8,200 $2,100 $1,600 Cost per Car Mashed $0.40 30.09 $ 0.25 $0.30 $ 0.02 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 $6.60 per car washed. Required: Prepare the company's flexible budget for August

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 10E: SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that...

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Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility nearMontreal. The following table provides data concerning the company’s costs:Fixed Cost Cost per Carper Month WashedCleaning supplies ...................... $0.80Electricity .................................. $1,200 $0.15Maintenance ............................ $0.20Wages and salaries ................. $5,000 $0.30Depreciation .............................. $6,000Rent .......................................... $8,000Administrative expenses .......... $4,000 $0.10For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company expects towash 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.
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