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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 Administrative expenses Rent Actual cars washed Revenue Expenses: Cleaning supplies. Electricity Maintenance For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.80 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Wages and salaries Depreciation Rent Administrative expenses Total expenses Net operating income Fixed Cost per Month Cars washed Revenue $ 1,100 $ 5,000 $ 8,400 $ 2,000 $ 1,500 Cost per Car Washed $ 0.70 Actual Results 8,100 $ 56,500 6,100 1,710 2,240 7,768 8,400 2,200 1,568 29,970 $ 26,530 $ 0.08 $ 0.25 $ 0.30 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., zero wariance). Input all amounts as positive values. 8,100 $ 56,500 $ 0.02 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 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 Administrative expenses Rent Actual cars washed Revenue Expenses: Cleaning supplies. Electricity Maintenance For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.80 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Wages and salaries Depreciation Rent Administrative expenses Total expenses Net operating income Fixed Cost per Month Cars washed Revenue $ 1,100 $ 5,000 $ 8,400 $ 2,000 $ 1,500 Cost per Car Washed $ 0.70 Actual Results 8,100 $ 56,500 6,100 1,710 2,240 7,768 8,400 2,200 1,568 29,970 $ 26,530 $ 0.08 $ 0.25 $ 0.30 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., zero wariance). Input all amounts as positive values. 8,100 $ 56,500 $ 0.02 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Flexible Budget Planning Budget

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 5CE: Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each...
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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 $1,100 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.80 per car washed. The actual operating results for August are as follows: Actual cars washed Revenue Expenses: Lavage Rapide Income Statement For the Month Ended August 31. Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost per Cost per Month Car Washed $ 0.70 $ 1,100 $ 0.08 $ 0.25 $ 5,000 $ 0.30 $ 8,400 $ 2,000 $ 1,500 Administrative expenses Total expenses Net operating income Cars washed Revenue 8,100 $ 56,500 Actual Results 6,100 1,710 2,240 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., zero variance). Input all amounts as positive values. 7,760 8,400 2,200 1,568 29,970 $ 26,530 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 8,100 $ 56,500 Flexible Budget Planning Budget
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 $1,100 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.80 per car washed. The actual operating results for August are as follows: Actual cars washed Revenue Expenses: Lavage Rapide Income Statement For the Month Ended August 31. Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost per Cost per Month Car Washed $ 0.70 $ 1,100 $ 0.08 $ 0.25 $ 5,000 $ 0.30 $ 8,400 $ 2,000 $ 1,500 Administrative expenses Total expenses Net operating income Cars washed Revenue 8,100 $ 56,500 Actual Results 6,100 1,710 2,240 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., zero variance). Input all amounts as positive values. 7,760 8,400 2,200 1,568 29,970 $ 26,530 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 8,100 $ 56,500 Flexible Budget Planning Budget
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