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 Rent Wages and salaries Depreciation Administrative expenses For example, electricity costs are $1,300 per month plus $0.07 per car washed. The company actually washed 8.100 cars in August and collected an average of $6.30 per car washed. Fixed Cost Cost per per Month Car Washed $ 0.50 $ 0.07 $ 0.10 $ 0.20 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 $1,300 $ 4,500 $ 8,100 $ 1,900 $ 1,600 Administrative expenses Total expense Net operating income $ 0.03

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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.