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 Hages and salaries Depreciation Administrative expenses Rent Actual cars washed Revenue Expenses: Lavage Rapide Income Statement For the Month Ended August 31 Cleaning supplies Electricity Haintenance Hages and salaries Depreciation Fixed Cost per Month For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.70 per car washed. The actual operating results for August are as follows. Rent $1,300 $4,700 $8,100 Administrative expenses Total expense Net operating income $1,900 $1,700 8,400 $57.710 5,480 2,017 1,070 Cost per Car Washed $0.60 $0.09 $0.10 $0.30 7,550 8,100 2,100 1,932 29,249 $ 29,461 $0.04 Required: Calculate the company's revenue and spending 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.)

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 Hages and salaries Depreciation Administrative expenses Rent Actual cars washed Revenue Expenses: Lavage Rapide Income Statement For the Month Ended August 31 Cleaning supplies Electricity Haintenance Hages and salaries Depreciation Fixed Cost per Month For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.70 per car washed. The actual operating results for August are as follows. Rent $1,300 $4,700 $8,100 Administrative expenses Total expense Net operating income $1,900 $1,700 8,400 $57.710 5,480 2,017 1,070 Cost per Car Washed $0.60 $0.09 $0.10 $0.30 7,550 8,100 2,100 1,932 29,249 $ 29,461 $0.04 Required: Calculate the company's revenue and spending 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.)

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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