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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 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses per Month Cost per Car Washed 0.00 1.100 0.05 0.15 4.700 0.30 8.200 2.100 1.000 0.03 For example, electricity costs are $1,100 per month plus $0.05 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.00 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses Cleaning supplies Maintenance Wages and salaries Depreciation Rent 8,300 57.800 5.420 1.480 1,470 7.620 8.200 2.300 1.746 28.138 Administrative expenses Total expense Net operating income Required: 29.724 Prepare a flexible budget performance report that shows the company's revenue and spending variances and 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 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 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses per Month Cost per Car Washed 0.00 1.100 0.05 0.15 4.700 0.30 8.200 2.100 1.000 0.03 For example, electricity costs are $1,100 per month plus $0.05 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.00 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses Cleaning supplies Maintenance Wages and salaries Depreciation Rent 8,300 57.800 5.420 1.480 1,470 7.620 8.200 2.300 1.746 28.138 Administrative expenses Total expense Net operating income Required: 29.724 Prepare a flexible budget performance report that shows the company's revenue and spending variances and 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.)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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: Cleaning supplies Electricity Maintenance Depreciation Wages and salaries Administrative expenses Rent Fixed Cost per Month Cost per Car Washed $ 1.100 0.60 0.05 0.15 $ 4.700 8.200 $ $ 1,000 For example, electricity costs are $1,100 per month plus $0.05 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.80 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue 8,300 $ 57.800 Expenses Cleaning supplies 5,420 Electricity 1,480 Maintenance Wages and salaries 7,520 Depreciation 8.200 Rent 2.300 Administrative expenses 1.740 20.136 29.724 Total expense Net operating income Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and 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 Flexible Budget Performance Report For the Month Ended August 31 Cars washed Actual Results 8.300 Revenue $ 57.880 Expenses: Cleaning supplies 5.420 Electricity Maintenance 1,470 Wages and salaries 7.520 Depreciation 8.200 Rent Administrative expenses 1,740 Total expense Net operating income $ 29,724 Flexible Planning Budget Budget
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: Cleaning supplies Electricity Maintenance Depreciation Wages and salaries Administrative expenses Rent Fixed Cost per Month Cost per Car Washed $ 1.100 0.60 0.05 0.15 $ 4.700 8.200 $ $ 1,000 For example, electricity costs are $1,100 per month plus $0.05 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.80 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue 8,300 $ 57.800 Expenses Cleaning supplies 5,420 Electricity 1,480 Maintenance Wages and salaries 7,520 Depreciation 8.200 Rent 2.300 Administrative expenses 1.740 20.136 29.724 Total expense Net operating income Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and 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 Flexible Budget Performance Report For the Month Ended August 31 Cars washed Actual Results 8.300 Revenue $ 57.880 Expenses: Cleaning supplies 5.420 Electricity Maintenance 1,470 Wages and salaries 7.520 Depreciation 8.200 Rent Administrative expenses 1,740 Total expense Net operating income $ 29,724 Flexible Planning Budget Budget
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