Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimatesconcerning the company's costs:Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentAdministrative expenses.$ 0.03For example, electricity costs should be $1,000 per month plus $0.07 per car washed. The company expects to wash 8.300 cars inAugust and to collect an average of $6.20 per car washed.The actual operating results for August are as follows:Lavage RapideIncome StatementActual cars washedRevenueExpenses:For the Month Ended August 31Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentFixed Cost Cost perper Month Car Washed$ 0.70$1,000$ 0.07$0.10$.0.30$ 4,300$ 8,200$2,100$ 1,700Administrative expensesTotal expensesHet operating income8,400$53,5606,3101,5511,0707,1508,2002.3001,84928,430$ 25,110 Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimatesconcerning the company's costs:Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentAdministrative expenses.$ 0.03For example, electricity costs should be $1,000 per month plus $0.07 per car washed. The company expects to wash 8.300 cars inAugust and to collect an average of $6.20 per car washed.The actual operating results for August are as follows:Lavage RapideIncome StatementActual cars washedRevenueExpenses:For the Month Ended August 31Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentFixed Cost Cost perper Month Car Washed$ 0.70$1,000$ 0.07$0.10$.0.30$ 4,300$ 8,200$2,100$ 1,700Administrative expensesTotal expensesHet operating income8,400$53,5606,3101,5511,0707,1508,2002.3001,84928,430$ 25,110

The flexible budget enables the managers to isolate the various causes of the differences between…

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 Administrative expenses. Rent $ 0.03 For example, electricity costs should be $1,000 per month plus $0.07 per car washed. The company expects to wash 8,300 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 Actual cars washed Revenue Expenses: For the Month Ended August 31 Cleaning supplies Electricity Maintenance Rent Wages and salaries Depreciation Fixed Cost Cost per per Month Car Washed $ 0.70 $ 0.07 $0.105 $.0.30 $1,000 $ 4,300 $ 8,200 $2,100 $ 1,700 Administrative expenses Total expenses Het operating income 8,400 $53,560 6,310 1,551 1,070 7,150 8,200 2,300 1,849 28,410 $25,130

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 Administrative expenses. Rent $ 0.03 For example, electricity costs should be $1,000 per month plus $0.07 per car washed. The company expects to wash 8,300 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 Actual cars washed Revenue Expenses: For the Month Ended August 31 Cleaning supplies Electricity Maintenance Rent Wages and salaries Depreciation Fixed Cost Cost per per Month Car Washed $ 0.70 $ 0.07 $0.105 $.0.30 $1,000 $ 4,300 $ 8,200 $2,100 $ 1,700 Administrative expenses Total expenses Het operating income 8,400 $53,560 6,310 1,551 1,070 7,150 8,200 2,300 1,849 28,410 $25,130

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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