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Lavage Rapide 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 Rent Administrative expenses $ 0.03 For example, electricity costs should be $1,100 per month plus $0.07 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.10 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 Fixed Cost per Month $ 1,100 $ 4,700 $ 8,300 $ 2,000 $ 1,800 Rent Administrative expenses Total expenses Net operating income Cost per Car Washed $ 0.80 $ 0.07 $ 0.15 $0.30 8,300 $ 52,120 7,060 1,644 1,470 7,520 8,300 2,200 1,946 36,140 $ 21,980 Required: Prepare a flexible budget performance report for August Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero

Lavage Rapide 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 Rent Administrative expenses $ 0.03 For example, electricity costs should be $1,100 per month plus $0.07 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.10 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 Fixed Cost per Month $ 1,100 $ 4,700 $ 8,300 $ 2,000 $ 1,800 Rent Administrative expenses Total expenses Net operating income Cost per Car Washed $ 0.80 $ 0.07 $ 0.15 $0.30 8,300 $ 52,120 7,060 1,644 1,470 7,520 8,300 2,200 1,946 36,140 $ 21,980 Required: Prepare a flexible budget performance report for August Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero

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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Total expenses Net operating income Required: Prepare a flexible budget performance report for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zere variance). Input all amounts as positive values. Cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expenses Net operating income 30,140 $ 21,980 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Results 8,300 $ 52,120 7,060 1,644 1,470 7,520 8,300 2,200 1,946 30,140 $ 21,980 Flexible Budget Planning Budget
Transcribed Image Text:Total expenses Net operating income Required: Prepare a flexible budget performance report for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zere variance). Input all amounts as positive values. Cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expenses Net operating income 30,140 $ 21,980 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Results 8,300 $ 52,120 7,060 1,644 1,470 7,520 8,300 2,200 1,946 30,140 $ 21,980 Flexible Budget Planning Budget
Lavage Rapide 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 Rent Administrative expenses Actual cars washed Revenue Expenses: $ 0.03 For example, electricity costs should be $1,100 per month plus $0.07 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.10 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Cleaning supplies. Electricity Maintenance Fixed Cost per Month $ 1,100 Wages and salaries Depreciation Rent $4,700 $ 8,300 $ 2,000 $1,800 Administrative expenses Total expenses Net operating income i Cost per Car Washed $ 0.80 $ 0.07 $ 0.15 $ 0.30 8,300 $ 52,120 7,060 1,644 1,478 7,520 8,300 2,200 1,946 30,140 $ 21,980 Required: Prepare a flexible budget performance report for August Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.
Transcribed Image Text:Lavage Rapide 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 Rent Administrative expenses Actual cars washed Revenue Expenses: $ 0.03 For example, electricity costs should be $1,100 per month plus $0.07 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.10 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Cleaning supplies. Electricity Maintenance Fixed Cost per Month $ 1,100 Wages and salaries Depreciation Rent $4,700 $ 8,300 $ 2,000 $1,800 Administrative expenses Total expenses Net operating income i Cost per Car Washed $ 0.80 $ 0.07 $ 0.15 $ 0.30 8,300 $ 52,120 7,060 1,644 1,478 7,520 8,300 2,200 1,946 30,140 $ 21,980 Required: Prepare a flexible budget performance report for August Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.
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