Required: Calculate the company's revenue and spending 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: Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income
Required: Calculate the company's revenue and spending 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: Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Required:
Calculate the company's revenue and spending 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:
Lavage Rapide
Revenue and Spending Variances
For the Month Ended August 31
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
Total expense
Net operating income
![Exercise 9-12 (Algo) 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 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 $1,200 per month plus $0.07 per car washed. The company expects to wash 8,200 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
Fixed
Cost per
Month
$ 1,200
$4,700
$ 8,100
$ 1,900
$ 1,700
Administrative expenses
Total expense
Net operating income
Cost per
Car Washed
$ 0.50
$ 0.07
$0.20
$ 0.20
8,300
$ 57,860
4,600
1,744
$ 0.03
1,880
6,700
8,100
2,100
1,846
26,970
$ 30,890](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0f37049b-ee3f-4069-9fde-0953944367e2%2Ffba06e8f-ed36-461f-9407-773dc7d66a7a%2F29rev7w_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 9-12 (Algo) 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 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 $1,200 per month plus $0.07 per car washed. The company expects to wash 8,200 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
Fixed
Cost per
Month
$ 1,200
$4,700
$ 8,100
$ 1,900
$ 1,700
Administrative expenses
Total expense
Net operating income
Cost per
Car Washed
$ 0.50
$ 0.07
$0.20
$ 0.20
8,300
$ 57,860
4,600
1,744
$ 0.03
1,880
6,700
8,100
2,100
1,846
26,970
$ 30,890
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