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 Hages and salaries Depreciation Administrative expenses Rest $ 0.04 For example, electricity costs should be $1,400 per month plus $0.06 per car washed. The company expects to wash 8.200 cars in August and to collect an average of $6.90 per car washed. The actual operating results for August are as follows: Actual cars vashed Lavage Rapide Income Statement For the Month Ended August 31 Revenue Expenses cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost per Month $ 1,400 $ 4,200 $ 8,100 $ 1,800 $1,600 Administrative expenses Total expense Net operating income Cost per Car Washed $ 0.60 $ 0.06 $ 0.10 $0.40 8,300 $58,680 5,420 1,862 1,060 7,840 8,100 2,000 1,828 20,110 $ 30,570 Required: Calculate the company's revenue and spending variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.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: Cleaning supplies Electricity Maintenance Hages and salaries Depreciation Administrative expenses Rest $ 0.04 For example, electricity costs should be $1,400 per month plus $0.06 per car washed. The company expects to wash 8.200 cars in August and to collect an average of $6.90 per car washed. The actual operating results for August are as follows: Actual cars vashed Lavage Rapide Income Statement For the Month Ended August 31 Revenue Expenses cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost per Month $ 1,400 $ 4,200 $ 8,100 $ 1,800 $1,600 Administrative expenses Total expense Net operating income Cost per Car Washed $ 0.60 $ 0.06 $ 0.10 $0.40 8,300 $58,680 5,420 1,862 1,060 7,840 8,100 2,000 1,828 20,110 $ 30,570 Required: Calculate the company's revenue and spending variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.

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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