Exercise 9-12 (Static) Revenue and Spending Variances [LO9-3]Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following tableprovides estimates concerning the company's costs:FixedCost perMonthCost perCar WashedCleaning supplies$ 0.80Electricity$ 1,200$ 0.15Maintenance$ 0.20Wages and salaries$ 5,000$ 0.30Depreciation$ 6,000Rent$ 8,000Administrative expenses$ 4,000$ 0.10For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars inAugust and to collect an average of $4.90 per car washed.The actual operating results for August are as follows:Lavage RapideIncome StatementFor the Month Ended August 31Actual cars washedRevenueExpenses:Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentAdministrative expensesTotal expenseNet operating incomeRequired:8,800$ 43,0807,5602,6702,2608,5006,0008,0004,95039,940$ 3,140Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)Lavage RapideRevenue and Spending VariancesFor the Month Ended August 31DA

Revenue and spending variances are important concepts in managerial accounting used to analyze the…

Answered: Required: alculate the company's…

Business

Accounting

Required: alculate the company's revenue and spending variances for August.

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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