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 Cost per Car Washed per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $0.80 $0.15 $0.20 $0.30 $1,200 $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 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 Electricity Maintenance Wages and salaries Depreciation Rent 7,560 2,670 2,260 8,500 6,000 8,000 4,950 39,940 $ 3,140 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: Fixed Cost Cost per Car Washed per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $0.80 $0.15 $0.20 $0.30 $1,200 $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 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 Electricity Maintenance Wages and salaries Depreciation Rent 7,560 2,670 2,260 8,500 6,000 8,000 4,950 39,940 $ 3,140 Administrative expenses Total expense Net operating income

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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Why are payments received from customers in advance, for either services to be performed and/or for goods to be delivered, classified as liabilities upon the receipt of the funds?
[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-$86,000 3. Property taxes on factory-$7,000 4. Office accounting salaries-$42,000 5. Drum stands-$27,000 6. Rent cost of office for accountants-$12,000 7. Office management salaries-$180,000 8. Annual fee for factory maintenance-$21,000 9. Sales commissions-$15,000 10. Factory machinery depreciation, straight-line-$40,000
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 $ 0.09 Maintenance $ 0.15 Wages and salaries $ 4,000 $ 0.20 Depreciation $ 8,200 Rent $ 1,900 Administrative expenses $ 1,700 $ 0.02 For example, electricity costs should be $1,100 per month plus $0.09 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.50 per car washed. Prepare the company’s planning budget for August.
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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 se.80 $0.15 $0.20 $0.30 per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Adninistrative expenses $1,200 $5,000 $6,000 $8,000 $4, 000 Book s0. 10 Print For example, electricity costs are $1,200 per month plus $015 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 company actually washed 8,800 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.) erences Lavage Rapide Activity Variances For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance…
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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: Fixed cost per month Cost per car washed Cleaning supplies $0.40 Electricity $1,200 $0.08 Maintaince $0.25 Wages and salaries $4,000 $0.30 Depreciation $8,000 Rent $1,900 Administrative expenses $1,500 $0.03 For example, electricity costs should be $1,200 per month plus $0.08…
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