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 Rent Wages and salaries. Depreciation Administrative expenses 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. Lavage Rapide Flexible Budget For the Month Ended August 31 Actual cars washed Revenue Expenses: Fixed Cost per Month $ 1,200 Required: Prepare the company's flexible budget for August. Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $ 0.50 $0.09 $0.20 $ 0.20 $4,400 $ 8,000 $ 1,800 $ 1,600 $ 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 Rent Wages and salaries. Depreciation Administrative expenses 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. Lavage Rapide Flexible Budget For the Month Ended August 31 Actual cars washed Revenue Expenses: Fixed Cost per Month $ 1,200 Required: Prepare the company's flexible budget for August. Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $ 0.50 $0.09 $0.20 $ 0.20 $4,400 $ 8,000 $ 1,800 $ 1,600 $ 0.04

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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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 Rent Wages and salaries Depreciation Administrative expenses For example, electricity costs are $1,100 per month plus $0.08 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $5.90 per car washed. Required: Prepare the company's planning budget for August. > Answer is complete but not entirely correct. Lavage Rapide Planning Budget For the Month Ended August 31 Budgeted cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost Cost per Car per Month Washed $ 1,100 $4,500 $ 8,400 $ 2,200 $1,400 Administrative expenses Total expense Net operating income $ $ 0x 0x 0x 0x 0X 0 x 0x 0x 0 x 0 do $ 0.50 $ 0.08 $ 0.30 $ 0.20 0 $ 0.02
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 per Month $ 1,300 $ 4,100 $ 8,400 $ 2,000 Administrative expenses $ 1,700 $ 0.05 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent For example, electricity costs are $1,300 per month plus $0.06 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.30 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 Cost per Car Washed $0.60 $ 0.06 $ 0.15 $0.30 Administrative expenses Total expense Net operating income $ 0 0
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 $ 0.03 For example, electricity costs should be $1,000 per month plus $0.08 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.50 per car washed. The company actually washed 8,400 cars in August. Rent Revenue Expenses: Required: Calculate the company's activity variances for August. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values.) Fixed Cost Cost per per Month Car Washed $ 0.50 $ 1,000 $ 0.08 $ 0.10 $ 0.30 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Lavage Rapide Activity Variances For the Month Ended…
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 Rent Wages and salaries. Depreciation 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. Actual cars washed Revenue Expenses: Required: Prepare the company's flexible budget for August. Cleaning supplies Electricity Maintenance Answer is complete but not entirely correct. Lavage Rapide Flexible Budget For the Month Ended August 31 Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Fixed Cost Cost per Car per Month Washed $0.40 $ 0.06 $0.15 $0.30 ✓ $1,300 $ 4,500 $ 8,100 $ $ $ 2,000 $ 1,300 0x 0x 0x 0x 0x 0x 0x 0x 0x 0 0
Hanshaben
Vinubhai
Blazer Chemical produces and sells an ice-melting granular used on roadways and sidewalks in winter. It annually produces and sells 42,000 tons of its granular. Because of this year’s mild winter, projected demand for its product is only 35,000 tons. Based on projected production and sales of 35,000 tons, the company estimates the following income using absorption costing. Sales (35,000 tons at $129 per ton) $ 4,515,000 Cost of goods sold (35,000 tons at $96 per ton) 3,360,000 Gross profit 1,155,000 Selling and administrative expenses 1,155,000 Income $ 0 Its product cost per ton follows and consists mainly of fixed overhead because its automated production process uses expensive equipment. Direct materials $ 12 per ton Direct labor $ 12 per ton Variable overhead $ 6 per ton Fixed overhead ($2,310,000/35,000 tons) $ 66 per ton Selling and administrative expenses consist of variable selling and administrative expenses of $11 per ton and fixed selling and…
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000 pounds of oysters in August. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (q) Revenue ($4.20q) Expenses: Packing supplies ($0.359) Oyster bed maintenance ($3,200) Wages and salaries ($2,300 + $0.309) Shipping ($0.709) Utilities ($1,280) Other ($450 + $0.019) Total expenses Net operating income The actual results for August were as follows: Quilcene Oysteria Income Statement For the Month Ended August 31 8,000 $ 33,600 2,800 3,200 4,700 5,600 1,280 530 18,110 $ 15,490 Actual pounds Revenue Expenses: Packing supplies Oyster bed maintenance Wages and salaries Shipping Utilities Other Total expenses Net operating income Required: 8,000 $ 27,100 2,970 3,060 5,110 5,330 1,090 1,150 18,710 $ 8,390 Calculate the company's revenue and spending variances for August. Note: Indicate the effect of each…
Dineshbhai
Lavage Rapide 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 Rent Administrative expenses. $ 0.03 For example, electricity costs should be $1,000 per month plus $0.07 per car washed. The company expects to wash 8.300 cars in August and to collect an average of $6.20 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement Actual cars washed Revenue Expenses: For the Month Ended August 31 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost Cost per per Month Car Washed $ 0.70 $1,000 $ 0.07 $0.10 $.0.30 $ 4,300 $ 8,200 $2,100 $ 1,700 Administrative expenses Total expenses Het operating income 8,400 $53,560 6,310 1,551 1,070 7,150 8,200 2.300 1,849 28,430 $ 25,110
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,400 pounds of oysters in August. The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (9) Revenue ($4.20q) Expenses: Packing supplies ($0.309) Oyster bed maintenance ($3,180) Wages and salaries ($2,300 + $0.25q) Utilities ($1,250) Shipping ($0.750) Other ($460 +$0.019) Total expense Net operating income The actual results for August appear below: Quilcene Oysteria Income Statement For the Month Ended August 31 7,400 $ 31,080 2,220 3,100 4,150 5,550 1,250 534 16,804 $ 14,276 Packing supplies Wages and salaries Actual pounds Revenue Expenses: 7,400 $ 27,300 2,390 Oyster bed maintenance. 2,960 4,560 5, 280 1,060 1,154 17,404 $ 9,896 Shipping Utilities Other Total expense Net operating income Required: Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by…
Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 8,000 pounds of oysters in August. The company’s flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (q) 8,000 Revenue ($4.20q) $ 33,600 Expenses: Packing supplies ($0.40q) 3,200 Oyster bed maintenance ($3,200) 3,200 Wages and salaries ($2,400 + $0.50q) 6,400 Shipping ($0.75q) 6,000 Utilities ($1,250) 1,250 Other ($470 + $0.01q) 550 Total expense 20,600 Net operating income $ 13,000 The actual results for August were as follows: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 8,000 Revenue $ 26,900 Expenses: Packing supplies 3,370 Oyster bed maintenance 3,060 Wages and salaries 6,810 Shipping 5,730 Utilities 1,060 Other 1,170 Total expense 21,200 Net operating income $ 5,700 Required: Calculate the company’s revenue…