Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The ollowing table provides data concerning the company's costs: Fixed Cost Cost per per Month Car Washed $0.70 $0.08 $0.15 $0.40 Cleaning supplies Electricity Maintenance $1,100 Wages and salaries Depreciation $4,100 $8,000 $2,100 Rent Administrative $1,500 $0.02 expenses For example, electricity costs are $1,100 per month plus $0.08 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.40 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,200 Revenue $53,940 Expenses: Cleaning supplies Electricity Maintenance 6,170 1,718 1,455 7,700 8,000 2,300 Wages and salaries Depreciation Rent Administrative 1,562 expenses Total expense 28,905 Net operating income $25,035 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 ollowing table provides data concerning the company's costs: Fixed Cost Cost per per Month Car Washed $0.70 $0.08 $0.15 $0.40 Cleaning supplies Electricity Maintenance $1,100 Wages and salaries Depreciation $4,100 $8,000 $2,100 Rent Administrative $1,500 $0.02 expenses For example, electricity costs are $1,100 per month plus $0.08 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.40 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,200 Revenue $53,940 Expenses: Cleaning supplies Electricity Maintenance 6,170 1,718 1,455 7,700 8,000 2,300 Wages and salaries Depreciation Rent Administrative 1,562 expenses Total expense 28,905 Net operating income $25,035 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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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 Administrative expenses Rent Fixed Cost per Month $1,500 $ 4,800 $8,200 $ 2,200 $ 1,600 Cost per Car Washed $0.50 $ 0.05 $ 0.15 $ 0.20 $ 0.05 For example, electricity costs should be $1,500 per month plus $0.05 per car washed. The company actually washed 8,300 cars in August and collected an average of $6.80 per car washed. Check my we
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Lavage Rapide 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 $ 0.01 For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.60 per car washed. The company actually washed 8.300 cars in August. Fixed Cost Cost per per Month Car Washed $0.40 $ 0.08 $1,100. $ 0.25 $ 4,400 $ 0.40 $ 8,400 Revenue Expenses Required: Calculate the company's activity 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. $2,000 $1,600 Cleaning supplies Electricity Lavage Rapide Activity Variances For the Month Ended August 31
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: Fixed Cost Cost per Car Washed se.80 $0.15 $0.20 $0.30 per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Adninistrative expenses $1,200 $5,000 $6,000 $8,000 $4, 000 Book s0. 10 Print For example, electricity costs are $1,200 per month plus $015 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. The company actually washed 8,800 cars in August. Required: Calculate the company's 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.) erences Lavage Rapide Activity Variances For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance…
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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: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.80 Electricity $ 1,200 $ 0.09 Maintenance $ 0.15 Wages and salaries $ 4,500 $ 0.40 Depreciation $ 8,100 Rent $ 1,800 Administrative expenses $ 1,600 $ 0.02 For example, electricity costs should be $1,200 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.10 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,400 Revenue $ 52,730 Expenses: Cleaning supplies 7,140 Electricity 1,917 Maintenance 1,485 Wages and salaries 8,180 Depreciation 8,100 Rent 2,000 Administrative expenses 1,666 Total expense 30,488 Net operating…
Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year: Cost of clay used in production $ 75,000 Wages paid to the workers who paint the figurines $ 86,000 Wages paid to the sales manager's secretary $ 38,000 Cost of junk mail advertising $ 55,000 What is the total of the product costs above? $179,000 $93,000 $161,000 $0
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