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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 Administrative expenses Rent Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance. For example, electricity costs should be $1,300 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.00 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Wages and salaries. Depreciation Rent Administrative expenses Total expense Net operating income Revenue Expenses: Fixed Cost per Month $ 1,300 $ 4,500 $ 8,400 $ 1,900 $ 1,600 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Cost per Car Washed $ 0.70 $ 0.09 $ 0.25 $ 0.30 Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Administrative expenses Total expense Net operating income 8,500 $ 52,500 Required: Calculate the company's revenue and spending 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.) 6,380 2,026 2,340 7,380 8,400 2,100 1,752 30,378 $ 22,122 $ 0.03

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 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance. For example, electricity costs should be $1,300 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.00 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Wages and salaries. Depreciation Rent Administrative expenses Total expense Net operating income Revenue Expenses: Fixed Cost per Month $ 1,300 $ 4,500 $ 8,400 $ 1,900 $ 1,600 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Cost per Car Washed $ 0.70 $ 0.09 $ 0.25 $ 0.30 Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Administrative expenses Total expense Net operating income 8,500 $ 52,500 Required: Calculate the company's revenue and spending 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.) 6,380 2,026 2,340 7,380 8,400 2,100 1,752 30,378 $ 22,122 $ 0.03

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 Administrative expenses Rent Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance. For example, electricity costs should be $1,300 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.00 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Wages and salaries. Depreciation Rent Administrative expenses Total expense Net operating income Revenue Expenses: Fixed Cost per Month $ 1,300 $ 4,500 $ 8,400 $ 1,900 $ 1,600 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Cost per Car Washed $ 0.70 $ 0.09 $ 0.25 $ 0.30 Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Administrative expenses Total expense Net operating income 8,500 $ 52,500 Required: Calculate the company's revenue and spending 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.) 6,380 2,026 2,340 7,380 8,400 2,100 1,752 30,378 $ 22,122 $ 0.03
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 estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Administrative expenses Rent Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance. For example, electricity costs should be $1,300 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.00 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Wages and salaries. Depreciation Rent Administrative expenses Total expense Net operating income Revenue Expenses: Fixed Cost per Month $ 1,300 $ 4,500 $ 8,400 $ 1,900 $ 1,600 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Cost per Car Washed $ 0.70 $ 0.09 $ 0.25 $ 0.30 Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Administrative expenses Total expense Net operating income 8,500 $ 52,500 Required: Calculate the company's revenue and spending 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.) 6,380 2,026 2,340 7,380 8,400 2,100 1,752 30,378 $ 22,122 $ 0.03
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