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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 For Actual cars washed Revenue Expenses: Wages and salaries Depreciation Rent Administrative expenses For example, electricity costs should be $1,400 per month plus $0.08 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.00 per car washed. The actual operating results for August are as follows: Lavage Rapide Income statement the Month Ended August 31 cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Fixed Cost Cost per per Month Car Washed $ 0.60 $ 0.08 $ 0.25 $ 0.30 Cars washed Revenue Expenses: $ 1,400 $ 4,400 $ 8,000 $ 2,200 $ 1,700 Cleaning supplies Electricity Maintenance 8,400 $ 51,900 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 varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values.) Actual Results 2,315 7,250 8,000 2,400 2,015 29,494 $ 22,406 5,480 2,034 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 8,400 S 51,900 $ 0.05 5,480 2,034 2,315 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 estimates concerning the company's costs: Cleaning supplies Electricity Maintenance For Actual cars washed Revenue Expenses: Wages and salaries Depreciation Rent Administrative expenses For example, electricity costs should be $1,400 per month plus $0.08 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.00 per car washed. The actual operating results for August are as follows: Lavage Rapide Income statement the Month Ended August 31 cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Fixed Cost Cost per per Month Car Washed $ 0.60 $ 0.08 $ 0.25 $ 0.30 Cars washed Revenue Expenses: $ 1,400 $ 4,400 $ 8,000 $ 2,200 $ 1,700 Cleaning supplies Electricity Maintenance 8,400 $ 51,900 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 varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values.) Actual Results 2,315 7,250 8,000 2,400 2,015 29,494 $ 22,406 5,480 2,034 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 8,400 S 51,900 $ 0.05 5,480 2,034 2,315 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 estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses For Actual cars washed Revenue For example, electricity costs should be $1,400 per month plus $0.08 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.00 per car washed. The actual operating results for August are as follows: Lavage Rapide Income statement the Month Ended August 31 Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Fixed Cost Cost per per Month Car Washed $ 0.60 $ 1,400 $ 0.08 $ 0.25 $ 4,400 $ 0.30 $ 8,000 $ 2,200 $ 1,700 Cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance 8,400 $ 51,900 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 varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values.) Actual Results 8,000 2,400 2,015 29,494 $ 22,406 5,480 2,034 2,315 7,250 $ 0.05 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 8,400 S 51,900 5,480 2,034 2,315 Flexible Budget Planning 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 estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses For Actual cars washed Revenue For example, electricity costs should be $1,400 per month plus $0.08 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.00 per car washed. The actual operating results for August are as follows: Lavage Rapide Income statement the Month Ended August 31 Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Fixed Cost Cost per per Month Car Washed $ 0.60 $ 1,400 $ 0.08 $ 0.25 $ 4,400 $ 0.30 $ 8,000 $ 2,200 $ 1,700 Cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance 8,400 $ 51,900 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 varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero varlance). Input all amounts as positive values.) Actual Results 8,000 2,400 2,015 29,494 $ 22,406 5,480 2,034 2,315 7,250 $ 0.05 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 8,400 S 51,900 5,480 2,034 2,315 Flexible Budget Planning Budget
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