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 Cost per Car Washed Month Cleaning supplies Electricity Maintenance $ 0.60 $ 0.06 $ 0.10 $ 0.20 $ 1,000 Wages and salaries Depreciation $ 4,700 $ 8,100 $ 1,800 $ 1,500 Rent Administrative expenses $ 0.04 For example, electricity costs should be $1,000 per month plus $0.06 per car washed. The company actually washed 8,300 cars in August and collected an average of $6.90 per car washed. Required: Prepare the company's flexible budget for August.

FINANCIAL ACCOUNTING
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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:
Fixed
Cost per
Cost per
Car Washed
Month
Cleaning supplies
Electricity
Maintenance
$ 0.60
$ 0.06
$ 0.10
$ 0.20
$ 1,000
Wages and salaries
Depreciation
$ 4,700
$ 8,100
$ 1,800
$ 1,500
Book
Rent
Hint
Administrative expenses
$ 0.04
For example, electricity costs should be $1,000 per month plus $0.06 per car washed. The company actually washed 8,300 cars in
August and collected an average of $6.90 per car washed.
Required:
Prepare the company's flexible budget for August.
Lavage Rapide
Flexible Budget
For the Month Ended August 31
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: Fixed Cost per Cost per Car Washed Month Cleaning supplies Electricity Maintenance $ 0.60 $ 0.06 $ 0.10 $ 0.20 $ 1,000 Wages and salaries Depreciation $ 4,700 $ 8,100 $ 1,800 $ 1,500 Book Rent Hint Administrative expenses $ 0.04 For example, electricity costs should be $1,000 per month plus $0.06 per car washed. The company actually washed 8,300 cars in August and collected an average of $6.90 per car washed. Required: Prepare the company's flexible budget for August. Lavage Rapide Flexible Budget For the Month Ended August 31
Lavage Rapide
Flexible Budget
For the Month Ended August 31
Budgeted cars washed
Revenue
Expenses:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
Total expense
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