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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 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.

FINANCIAL ACCOUNTING
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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ed Revenue Expenses: Cleaning supplies Electricity Maintenance. Wages and salaries. Depreciation Rent This window shows your responses and what was mark Administrative expenses Total expense Net operating income Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Required: Calculate the company's revenue and spending variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" fc variance). Input all amounts as positive values. Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 $ 57,270 Administrative expenses Total expense Net operating income $58,680 5,420 1,862 1,060 $ 30,210 7,840 8,100 2,000 1,828 28,110 $ 30,570 F 4,980 U 1,898 F 830 X U 7,520 X U 8,100 1,800 U 1,932 F 27,060 U F None
Transcribed Image Text:ed Revenue Expenses: Cleaning supplies Electricity Maintenance. Wages and salaries. Depreciation Rent This window shows your responses and what was mark Administrative expenses Total expense Net operating income Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Required: Calculate the company's revenue and spending variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" fc variance). Input all amounts as positive values. Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 $ 57,270 Administrative expenses Total expense Net operating income $58,680 5,420 1,862 1,060 $ 30,210 7,840 8,100 2,000 1,828 28,110 $ 30,570 F 4,980 U 1,898 F 830 X U 7,520 X U 8,100 1,800 U 1,932 F 27,060 U F None
warded 00:58 ed 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: Rest Cleaning supplies Electricity Maintenance Hages and salaries Depreciation Administrative expenses $ 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 Hages 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 Lavage Rapide 8,300 $58,680 5,420 1,862 1,060 7,840 8,100 2,000 1,828 20,110 $ 30,570 $ 0.60 $ 0.06 $ 0.10 $0.40 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 (i.e., zero variance), Input all amounts as positive values.
Transcribed Image Text:warded 00:58 ed 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: Rest Cleaning supplies Electricity Maintenance Hages and salaries Depreciation Administrative expenses $ 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 Hages 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 Lavage Rapide 8,300 $58,680 5,420 1,862 1,060 7,840 8,100 2,000 1,828 20,110 $ 30,570 $ 0.60 $ 0.06 $ 0.10 $0.40 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 (i.e., zero variance), Input all amounts as positive values.
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