Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following provides estimates concerning the company's costs: Fixed Cost per Cost per Car Washed Month Cleaning supplies Electricity Maintenance $ 0.80 $ 0.15 $ 0.20 $ 0.30 $ 1,200 Wages and salaries Depreciation Rent Administrative expenses $ 5,000 $ 6,000 $ 8,000 $ 4,000 $ 0.10 For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company actually washed 8,800 cars in August and collected an average of $4.90 per car washed.

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following provides estimates concerning the company's costs: Fixed Cost per Cost per Car Washed Month Cleaning supplies Electricity Maintenance $ 0.80 $ 0.15 $ 0.20 $ 0.30 $ 1,200 Wages and salaries Depreciation Rent Administrative expenses $ 5,000 $ 6,000 $ 8,000 $ 4,000 $ 0.10 For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company actually washed 8,800 cars in August and collected an average of $4.90 per car washed.

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 Fixed Cost Cost per per Month Car Washed $ 0.50 $ 1,300 $ 0.07 $ 0.15 $ 4,500 $ 0.20 $ 8,200 $ 1,800 $ 1,500 $ 0.02 For example, electricity costs should be $1,300 per month plus $0.07 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.50 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 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Required: 8,600 $ 57,350 4,750 1,865 1,515 6,560 8,200 2,000 1,570 26,460 $ 30,890 Prepare a flexible budget performance…
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 Electricity Maintenance Wages and salaries Depreciation $ 0. 70 $ 0.08 $ 0.20 $ 0.30 $ 1,400 $ 4,300 $ 8,300 $ 1,800 $ 1,500 Rent Administrative expenses $ 0.02 For example, electricity costs should be $1,400 per month plus $0.08 per car washed. The company actually washed 8,400 cars in August and collected an average of $6.10 per car washed. Required: Prepare the company's flexible budget for August. Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income
am. 112.
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 $ 0.70 Electricity $ 1,100 $ 0.08 Maintenance $ 0.25 Wages and salaries $ 4,200 $ 0.30 Depreciation $ 8,400 Rent $ 2,100 Administrative expenses $ 1,500 $ 0.01 For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.90 per car washed. The company actually washed 8,600 cars in August. 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.
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 Costper Month Cost perCar Washed Cleaning supplies $ 0.80 Electricity $ 1,200 $ 0.15 Maintenance $ 0.20 Wages and salaries $ 5,000 $ 0.30 Depreciation $ 6,000 Rent $ 8,000 Administrative expenses $ 4,000 $ 0.10 For example, electricity costs should be $1,200 per month plus $0.15 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 actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,800 Revenue $ 43,080 Expenses: Cleaning supplies 7,560 Electricity 2,670 Maintenance 2,260 Wages and salaries 8,500 Depreciation 6,000 Rent 8,000…
Lavage Rapide is a Canadlan 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 $ 0.40 $ 0.10 $ 0.10 $ 0. 20 per Month Cleaning supplies Electricity Maintenance $ 1,e00 $ 4,100 $ 8,100 $ 2, 200 $ 1,300 Wages and salaries Depreciation Rent Administrative expenses $ 0.04 For example, electricity costs are $1,000 per month plus $0.10 per car washed. The company expects to wash 8,500 cars In August and to collect an average of $6.30 per car washed. Requlred: Prepare the company's planning budget for August. Lavage Rapide Planning Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income
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 Cost per per Month Car Washed $ 0.70 $ 1,200 $ 0.07 $ 0.15 $ 4,900 $ 0.40 $ 8,000 $ 2,000 $ 1,400 $ 0.02 For example, electricity costs should be $1,200 per month plus $0.07 per car washed. The company expects to wash 8,200 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 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Required: 8,300 $ 52,120 6,240 1,744 1,470 8,540 8,000 2,200 1,464 29,658 $ 22,462 Calculate the company's revenue and…
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 Wages and salaries Depreciation Rent Administrative expenses Fixed Cost Cost per Car per Month Washed $ 0.50 $ 1,500 $ 0.07 $ 0.20 $ 4,100 $ 0.30 $ 8,400 $ 2,000 $ 1,700 $ 0.03 For example, electricity costs are $1,500 per month plus $0.07 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.70 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 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Required: 8,600 $ 59,050 4,750 2,065 1,940 7,010 8,400 2,200 1,855 28,220 $ 30,830 Calculate the company's revenue and spending…
k ces 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 $ 1,100 $ 4,200 $ 8,300 $ 2,200 $ 1,700 Cost per Car Washed $ 0.60 $ 0.08 $0.15 $ 0.20 $ 0.02 For example, electricity costs should be $1,100 per month plus $0.08 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.)
Ch 6) Required information [The following information applies to the questions displayed below.] Listed here are the costs associated with the production of 1,000 drum sets manufactured by TrueBeat. Costs 1. Plastic for casing-$21,000 2. Wages of assembly workers-$85,000 3. Property taxes on factory-$6,000 4. Office accounting salaries-$32,000 5. Drum stands-$43,000 6. Rent cost of office for accountants-$36,000 7. Office management salaries-$160,000 8. Annual fee for factory maintenance-$16,000 9. Sales commissions-$18,000 10. Factory machinery depreciation, straight-line-$47,000 Costs Required: 1. Classify each cost and its amount as either product or period. The first cost is completed as an example. 1. Plastic for casing 2. Wages of assembly workers 3. Property taxes on factory 4. Office accounting salaries 5. Drum stands 6. Rent cost of office for accountants 7. Office management salaries 8. Annual fee for factory maintenance 9. Sales commissions 10. Factory machinery…
Required information Skip to question [The following information applies to the questions displayed below.] Listed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $500 each. Costs 1. Plastic for casing—$17,000 2. Wages of assembly workers—$82,000 3. Property taxes on factory—$5,000 4. Accounting staff salaries—$35,000 5. Drum stands (1,000 stands purchased)—$26,000 6. Rent cost of equipment for sales staff—$10,000 7. Upper management salaries—$125,000 8. Annual flat fee for factory maintenance service—$10,000 9. Sales commissions—$15 per unit 10. Machinery depreciation, straight-line—$40,000 Required:1. Classify each cost and its amount as (a) either variable or fixed and (b) either product or period. (The first cost is completed as an example.) Cost by Behavior Cost by Function Costs Variable Fixed Product Period 1. Plastic for casing 2.…
1 requiring considerable travel time. The owner's daughter suggested answering this question by designing an activity- based costing system using the information shown below. ok 1 ht nces Activity Cost Pool Cleaning carpets Travel to jobs Job support Other (organization-sustaining costs and idle capacity costs) Wages Cleaning supplies Cleaning equipment depreciation Vehicle expenses Office expenses President's compensation Not applicable The total cost of operating the company for the year is $359,000 which includes the following costs: $ 141,000 22,000 14,000 33,000 71,000 78,000 $ 359,000 She distributed these operating costs across her four activities as follows: Total cost Wages Cleaning supplies Cleaning equipment depreciation Activity Measure Square feet cleaned (00s) Miles driven Number of jobs Vehicle expenses Office expenses President's compensation None Distribution of Resource Consumption Across Activities Cleaning Travel Job Carpets to Jobs Support Other Total 73% 08 16%…