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 Fixed Cost per Month $ 1,000 $ 5,000 $8,000 $ 2,200 $1,400 Cost per Car Washed $ 0.50 $ 0.00 5.0.15 $ 0.40 $ 0.02 For example, electricity costs should be $1,000 per month plus $0.08 per car washed. The company actually washed 8,400 cars in August and collected an average of $6.40 per car washed.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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
$ 0.02
For example, electricity costs should be $1,000 per month plus $0.08 per car washed. The company actually washed 8,400 cars in
August and collected an average of $6.40 per car washed.
Lavage Rapide
Flexible Budget
For the Month Ended August 31
Revenue
Expenses
▬▬▬▬▬
Fixed
Cost per
Month
$1,000
$5,000
$ 8,000
$ 2,200
$1,400
Required:
Prepare the company's flexible budget for August.
Cost per
Car Washed
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
$ 0.50
$ 0.08
$ 0.15
$0.40
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 $ 0.02 For example, electricity costs should be $1,000 per month plus $0.08 per car washed. The company actually washed 8,400 cars in August and collected an average of $6.40 per car washed. Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses ▬▬▬▬▬ Fixed Cost per Month $1,000 $5,000 $ 8,000 $ 2,200 $1,400 Required: Prepare the company's flexible budget for August. Cost per Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation $ 0.50 $ 0.08 $ 0.15 $0.40
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