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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 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance For example, electricity costs should be $1,400 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.60 per car washed. The actual operating results for August are as follows: Wages and salaries Depreciation Rent Lavage Rapide Income Statement For the Month Ended August 31 Administrative expenses Total expense Net operating income Required: Drena Fixed Cost Cost per Car per Month Washed $ 1,400 $4,600 $ 8,300 $ 1,900 $ 1,400 flexibl 8,500 $ 57,540 7,220 2,126 2,340 7,480 $0.80 $ 0.09 $ 0.25 $ 0.30 8,300 2,100 1,384 30,950 $26,590 $ 0.01

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 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance For example, electricity costs should be $1,400 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.60 per car washed. The actual operating results for August are as follows: Wages and salaries Depreciation Rent Lavage Rapide Income Statement For the Month Ended August 31 Administrative expenses Total expense Net operating income Required: Drena Fixed Cost Cost per Car per Month Washed $ 1,400 $4,600 $ 8,300 $ 1,900 $ 1,400 flexibl 8,500 $ 57,540 7,220 2,126 2,340 7,480 $0.80 $ 0.09 $ 0.25 $ 0.30 8,300 2,100 1,384 30,950 $26,590 $ 0.01

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 Actual cars washed Revenue Expenses: For example, electricity costs should be $1,400 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.60 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Rent Fixed Cost Cost per Car per Month Washed $ 1,400 $ 4,600 $ 8,300 $ 1,900 $1,400 Administrative expenses Total expense Net operating income 8,500 $ 57,540 7,220 2,126 2,340 7,480 $ 0.80 $ 0.09 $ 0.25 $ 0.30 8,300 2,100 1,384 30,950 $26,590 $ 0.01 Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and 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.
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 Actual cars washed Revenue Expenses: For example, electricity costs should be $1,400 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.60 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Rent Fixed Cost Cost per Car per Month Washed $ 1,400 $ 4,600 $ 8,300 $ 1,900 $1,400 Administrative expenses Total expense Net operating income 8,500 $ 57,540 7,220 2,126 2,340 7,480 $ 0.80 $ 0.09 $ 0.25 $ 0.30 8,300 2,100 1,384 30,950 $26,590 $ 0.01 Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and 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.
Cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Results 8,500 $ 57,540 7,220 2,126 2,340 7,480 8,300 2,100 1,384 30,950 $ 26,590 Flexible Budget Planning Budget
Transcribed Image Text:Cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Results 8,500 $ 57,540 7,220 2,126 2,340 7,480 8,300 2,100 1,384 30,950 $ 26,590 Flexible Budget Planning Budget
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