Please do not give solution in image format thanku Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following tableprovides estimates concerning the company's costs:Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentAdministrativeexpensesFixed Cost perMonth$1,100$4,400$ 8,300$1,900Cost per CarWashed$ 0.70$ 0.09$ 0.10$ 0.20$ 1,400$ 0.02For example, electricity costs should be $1,100 per month plus $0.09 per car washed. The company expects to wash 8,300 cars inAugust and to collect an average of $6.50 per car washed. The company actually washed 8,400 cars in August.Required:Calculate the company's activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

The activity variance is the difference between the planning budget and flexible budget. The…

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 Fixed Cost per Month Cost per Car Washed $ 0.70

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 Fixed Cost per Month Cost per Car Washed $ 0.70

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 5PA: Allocating selling and administrative expenses using activity-based costing Arctic Air Inc....

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Please do not give solution in image format thanku

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
Fixed Cost per
Month
$1,100
$4,400
$ 8,300
$1,900
Cost per Car
Washed
$ 0.70
$ 0.09
$ 0.10
$ 0.20
$ 1,400
$ 0.02
For example, electricity costs should be $1,100 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in
August and to collect an average of $6.50 per car washed. The company actually washed 8,400 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.)

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