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 Actual cars washed Revenue Expenses: For example, electricity costs are $1,300 per month plus $0.08 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.70 per car washed. The actual operating results for August appear below. For the Month Ended August 31 Cleaning supplies Electricity Maintenance Lavage Rapide Income Statement. Wages and salaries. Depreciation Rent Administrative expenses Total expense Net operating income Cars washed Revenue Expenses: Fixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent $1,300 $4,900 $8,200 $1,900 $1,500 Administrative expenses Total expense Net operating income 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 (i.e., zero variance). Input all amounts as positive values.) 8,300 $ 57,040 6,240 1,926 1,880 6,900 8,200 2,100 1,482 28,728 $ 28,312 Actual Results Cost per Car Washed $0.70 $0.08 $0.20 $0.20 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 8,300 $0.01 $ 57,040 6,240 1,926 1,880 6,900 8,200 2,100 1,482 28,728 $ 28,312 Flexible Budget Planning Budget
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 Actual cars washed Revenue Expenses: For example, electricity costs are $1,300 per month plus $0.08 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.70 per car washed. The actual operating results for August appear below. For the Month Ended August 31 Cleaning supplies Electricity Maintenance Lavage Rapide Income Statement. Wages and salaries. Depreciation Rent Administrative expenses Total expense Net operating income Cars washed Revenue Expenses: Fixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent $1,300 $4,900 $8,200 $1,900 $1,500 Administrative expenses Total expense Net operating income 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 (i.e., zero variance). Input all amounts as positive values.) 8,300 $ 57,040 6,240 1,926 1,880 6,900 8,200 2,100 1,482 28,728 $ 28,312 Actual Results Cost per Car Washed $0.70 $0.08 $0.20 $0.20 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 8,300 $0.01 $ 57,040 6,240 1,926 1,880 6,900 8,200 2,100 1,482 28,728 $ 28,312 Flexible Budget Planning Budget
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Vd
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:
Cleaning supplies.
Electricity
Maintenance
Wages and salaries.
Depreciation
Administrative expenses
Rent
Actual cars washed
Revenue
Expenses:
For example, electricity costs are $1,300 per month plus $0.08 per car washed. The company expects to wash 8,200 cars in August
and to collect an average of $6.70 per car washed.
The actual operating results for August appear below.
Lavage Rapide
Income Statement
For the Month Ended August 31
Cleaning supplies
Electricity
Maintenance.
Wages and salaries.
Depreciation
Rent
Administrative expenses.
Total expense
Net operating income.
Cars washed
Revenue
Expenses:
Fixed Cost
per Month
$1,300
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
$4,900
$8,200
$1,900
$1,500
Administrative expenses
Total expense
Net operating income
8,300
$ 57,040
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 (i.e., zero
variance). Input all amounts as positive values.)
6,240
1,926
1,880
6,900
8,200
2,100
1,482
28,728
$ 28,312
Actual
Results
Cost per
Car Washed
$0.70
$0.08
$0.20
$0.20
Lavage Rapide
Flexible Budget Performance Report
For the Month Ended August 31
8,300
$0.01
$ 57,040
6,240
1,926
1,880
6,900
8,200
2,100
1,482
28,728
$ 28,312
Flexible
Budget
Planning
Budget
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education