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Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month Cost per Car Washed 50.60 $1,300 $0.06 $0.20 $4,400 $0.30 $8,200 $1,900 $1,500 $0.04 For example, electricity costs are $1,300 per month plus $0.06 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.50 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars vashed 8,200 Revenue $54,750 Expenses: Cleaning supplies 5,360 Electricity 1,756 Maintenance 1,860 Wages and salaries 7,190 Depreciation 8,200 Rent 2,100 Administrative expenses 1,724 Total expense 28,190 Net operating income $26,560 Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zer variance). Input all amounts as positive values.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Results Cars washed 8,200 Revenue S 54,750 Expenses Cleaning supplies 5,360 Electricity 1,756 Maintenance 1,860 Wages and salaries 7,190 Depreciation 8.200 Rent 2,100 Administrative expenses 1,724 Total expense 28,190 Net operating income $ 26,560 Flexible Budget Planning Budget

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month Cost per Car Washed 50.60 $1,300 $0.06 $0.20 $4,400 $0.30 $8,200 $1,900 $1,500 $0.04 For example, electricity costs are $1,300 per month plus $0.06 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.50 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars vashed 8,200 Revenue $54,750 Expenses: Cleaning supplies 5,360 Electricity 1,756 Maintenance 1,860 Wages and salaries 7,190 Depreciation 8,200 Rent 2,100 Administrative expenses 1,724 Total expense 28,190 Net operating income $26,560 Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zer variance). Input all amounts as positive values.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Results Cars washed 8,200 Revenue S 54,750 Expenses Cleaning supplies 5,360 Electricity 1,756 Maintenance 1,860 Wages and salaries 7,190 Depreciation 8.200 Rent 2,100 Administrative expenses 1,724 Total expense 28,190 Net operating income $ 26,560 Flexible Budget Planning Budget

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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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: Cost per Car Washed Fixed Cost per Month Cleaning supplies Electricity Maintenance $0.60 $1,300 $0.06 $0.20 Wages and salaries $4,400 $0.30 Depreciation $8,200 Rent $1,900 Administrative expenses $1,500 $0.04 For example, electricity costs are $1,300 per month plus $0.06 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.50 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars vashed 8,200 Revenue $54,750 Ехредлев: Cleaning supplies 5,360 Electricity 1,756 Maintenance 1,860 Wages and salaries 7,190 Depreciation 8,200 Rent 2,100 Administrative expenses 1,724 Total expense Net operating income 28,190 $26,560 Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Cars washed Revenue Actual Results 8,200 $ 54,750 Expenses Cleaning supplies 5,360 Electricity 1,756 Maintenance 1,860 Wages and salaries 7,190 Depreciation 8,200 Rent 2,100 Administrative expenses 1,724 Total expense 28,190 Net operating income $ 26,560 Flexible Planning Budget Budget
Transcribed Image Text: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: Cost per Car Washed Fixed Cost per Month Cleaning supplies Electricity Maintenance $0.60 $1,300 $0.06 $0.20 Wages and salaries $4,400 $0.30 Depreciation $8,200 Rent $1,900 Administrative expenses $1,500 $0.04 For example, electricity costs are $1,300 per month plus $0.06 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.50 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars vashed 8,200 Revenue $54,750 Ехредлев: Cleaning supplies 5,360 Electricity 1,756 Maintenance 1,860 Wages and salaries 7,190 Depreciation 8,200 Rent 2,100 Administrative expenses 1,724 Total expense Net operating income 28,190 $26,560 Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Cars washed Revenue Actual Results 8,200 $ 54,750 Expenses Cleaning supplies 5,360 Electricity 1,756 Maintenance 1,860 Wages and salaries 7,190 Depreciation 8,200 Rent 2,100 Administrative expenses 1,724 Total expense 28,190 Net operating income $ 26,560 Flexible Planning Budget Budget
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