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

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Chapter1: Financial Statements And Business Decisions
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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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