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 $ 0.02 For example, electricity costs should be $1,000 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.00 per car washed. The company actually washed 8,400 cars in August. Rent Required: Calculate the company's 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. Revenue Expenses: Cleaning supplies Electricity Maintenance Fixed Cost per Cost per Month Car Washed; $0.70 $ 1,000 $ 0.09 $ 0.20 $ 4,300 $0.20 $ 8,100 $ 1,800 $ 1,400 Lavage Rapide Activity Variances For the Month Ended August 31 Wages and salaries Depreciation Rent Administrative expenses Total expenses Net operating income
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 $ 0.02 For example, electricity costs should be $1,000 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.00 per car washed. The company actually washed 8,400 cars in August. Rent Required: Calculate the company's 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. Revenue Expenses: Cleaning supplies Electricity Maintenance Fixed Cost per Cost per Month Car Washed; $0.70 $ 1,000 $ 0.09 $ 0.20 $ 4,300 $0.20 $ 8,100 $ 1,800 $ 1,400 Lavage Rapide Activity Variances For the Month Ended August 31 Wages and salaries Depreciation Rent Administrative expenses Total expenses Net operating income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
Administrative expenses.
$ 0.02
For example, electricity costs should be $1,000 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in
August and to collect an average of $6.00 per car washed. The company actually washed 8,400 cars in August.
Rent
Required:
Calculate the company's 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.
Revenue
Expenses:
Fixed
Cost per Cost per
Month
Car Washed
$0.70
$ 1,000
$ 0.09
$ 0.20
$ 4,300
$0.20
$ 8,100
$ 1,800
$ 1,400
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation.
Rent
Lavage Rapide
Activity Variances
For the Month Ended August 31
Administrative expenses.
Total expenses
Net operating income
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