Lavage Rapide is a Canadiancompany that owns and operates alarge automatic car wash facility nearMontreal. The following tableprovides estimates concerning thecompany's costs: Fixed Cost perMonth Cost per Car WashedCleaning supplies $ 0.80 Electricity $1,200 $0.15 Maintenance $ 0.20 Wagesand salaries $5,000 $ 0.30 Depreciation$6,000 Rent $ 8,000 Administrativeexpenses $4,000 $ 0.10 For example,electricity costs should be $1,200 permonth plus $0.15 per car washed. Thecompany expects to wash 9,000 carsin August and to collect an averageof $4.90 per car washed. The actualoperating results for August are asfollows: Lavage Rapide IncomeStatement For the Month EndedAugust 31 Actual cars washed 8,800Revenue $ 43,080 Expenses: Cleaningsupplies 7,560 Electricity 2,670Maintenance 2,260 Wages and salaries8,500 Depreciation 6,000 Rent 8,000Administrative expenses 4,950 Totalexpense 39,940 Net operating income$3,140 Required: Calculate thecompany's revenue and spendingvariances for August. (Indicate theeffect of each variance by selecting "F" for favorable, "U" for unfavorable,and "None" for no effect (i.e., zerovariance). Input all amounts aspositive values.) Required: Prepare aflexible budget performance reportthat shows the company's revenueand spending variances and activityvariances for August. (Indicate theeffect of each variance by selecting -F* for favorable, "U" for unfavorable,and "None" for no effect (i.e., zerovariance). Input all amounts aspositive values.)

Variance-Variance Analysis helps an organization to understand the variations in the actual results…

Require Prepare a exible budget performance report hat shows the company's revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting is for favorable for unfavorable

Require Prepare a exible budget performance report hat shows the company's revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting is for favorable for unfavorable

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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Using a flexible budgeting approach how do I prepare a performance report for the current department for September 2016, comparing actual overhead cost with budgeted overhead cost for 5700 hours. Separate overhead costs into variable and fix components and show the amounts of any variances between actual and budget in amounts.
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Accounting Capstone - Budget Performace Variance Report
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