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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 $ 0.80 Electricity $ 1,200 $ 0.05 Maintenance $ 0.10 Wages and salaries $ 4,700 $ 0.40 Depreciation $ 8,400 Rent Administrative expenses $ 1,900 $ 1,400 $ 0.02 For example, electricity costs should be $1,200 per month plus $0.05 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.20 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 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Required: 8,500 $ 54,180 7,220 1,590 1,080 8,420 8,400 2,100 1,468 30,278 $ 23,902 Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. Note: 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 Revenue Actual Results 8,500 $ 54,180 Expenses: Cleaning supplies 7,220 Electricity 1,590 Maintenance 1,080 Wages and salaries 8,420 Depreciation 8,400 Rent 2,100 Administrative expenses 1,468 Total expense 30,278 Net operating income 23,902 Flexible Planning Budget Budget Prov 2 of 4 Ne

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 $ 0.80 Electricity $ 1,200 $ 0.05 Maintenance $ 0.10 Wages and salaries $ 4,700 $ 0.40 Depreciation $ 8,400 Rent Administrative expenses $ 1,900 $ 1,400 $ 0.02 For example, electricity costs should be $1,200 per month plus $0.05 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.20 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 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Required: 8,500 $ 54,180 7,220 1,590 1,080 8,420 8,400 2,100 1,468 30,278 $ 23,902 Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. Note: 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 Revenue Actual Results 8,500 $ 54,180 Expenses: Cleaning supplies 7,220 Electricity 1,590 Maintenance 1,080 Wages and salaries 8,420 Depreciation 8,400 Rent 2,100 Administrative expenses 1,468 Total expense 30,278 Net operating income 23,902 Flexible Planning Budget Budget Prov 2 of 4 Ne

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 estimates concerning the company's costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.80 Electricity $ 1,200 $ 0.05 Maintenance $ 0.10 Wages and salaries $ 4,700 $ 0.40 Depreciation $ 8,400 Rent Administrative expenses $ 1,900 $ 1,400 $ 0.02 For example, electricity costs should be $1,200 per month plus $0.05 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.20 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 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Required: 8,500 $ 54,180 7,220 1,590 1,080 8,420 8,400 2,100 1,468 30,278 $ 23,902 Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. Note: 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 Revenue Actual Results 8,500 $ 54,180 Expenses: Cleaning supplies 7,220 Electricity 1,590 Maintenance 1,080 Wages and salaries 8,420 Depreciation 8,400 Rent 2,100 Administrative expenses 1,468 Total expense 30,278 Net operating income 23,902 Flexible Planning Budget Budget Prov 2 of 4 Ne
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 Month Cost per Car Washed Cleaning supplies $ 0.80 Electricity $ 1,200 $ 0.05 Maintenance $ 0.10 Wages and salaries $ 4,700 $ 0.40 Depreciation $ 8,400 Rent Administrative expenses $ 1,900 $ 1,400 $ 0.02 For example, electricity costs should be $1,200 per month plus $0.05 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.20 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 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Required: 8,500 $ 54,180 7,220 1,590 1,080 8,420 8,400 2,100 1,468 30,278 $ 23,902 Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. Note: 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 Revenue Actual Results 8,500 $ 54,180 Expenses: Cleaning supplies 7,220 Electricity 1,590 Maintenance 1,080 Wages and salaries 8,420 Depreciation 8,400 Rent 2,100 Administrative expenses 1,468 Total expense 30,278 Net operating income 23,902 Flexible Planning Budget Budget Prov 2 of 4 Ne
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