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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 data concerning the company's costs: Fixed Cost Cost per Car Washed $0.70 $0.10 $0.30 $0.40 per Month Cleaning supplies Electricity Maintenance $1,500 Wages and salaries Depreciation Rent Administrative expenses $4,500 $8,200 $1,800 $1,400 $0.04 For example, electricity costs are $1,500 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.80 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.) Lavage Rapide Activity Variances 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 data concerning the company's costs: Fixed Cost Cost per Car Washed $0.70 $0.10 $0.30 $0.40 per Month Cleaning supplies Electricity Maintenance $1,500 Wages and salaries Depreciation Rent Administrative expenses $4,500 $8,200 $1,800 $1,400 $0.04 For example, electricity costs are $1,500 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.80 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.) Lavage Rapide Activity Variances For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income

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 data concerning the company's costs: Fixed Cost Cost per Car Washed $0.70 $0.10 $0.30 $0.40 per Month Cleaning supplies Electricity Maintenance $1,500 Wages and salaries Depreciation Rent Administrative expenses $4,500 $8,200 $1,800 $1,400 $0.04 For example, electricity costs are $1,500 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.80 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.) Lavage Rapide Activity Variances For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income
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 data concerning the company's costs: Fixed Cost Cost per Car Washed $0.70 $0.10 $0.30 $0.40 per Month Cleaning supplies Electricity Maintenance $1,500 Wages and salaries Depreciation Rent Administrative expenses $4,500 $8,200 $1,800 $1,400 $0.04 For example, electricity costs are $1,500 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.80 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.) Lavage Rapide Activity Variances For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income
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