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:Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationAdministrative expensesRentActual cars washed.For example, electricity costs should be $1,300 per month plus $0.09 per car washed. The company expects to wash 8,000 carsAugust and to collect an average of $6.90 per car washed.The actual operating results for August are as follows:Lavage RapideIncome StatementFor the Month Ended August 31RevenueExpenses:Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentFixed Cost Cost per Carper MonthWashed$ 1,300$4,100$ 8,000$ 1,800$ 1,700Administrative expensesTotal expenseNet operating income8,100$ 57,300$ 0.80$ 0.09$0.20$ 0.306,9001,9901,8406,8608,0002,0001,84029,430$ 27,870$ 0.03 Required:Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances forAugust.Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zerovariance). Input all amounts as positive values.Cars washedRevenueExpenses:Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentAdministrative expensesTotal expenseNet operating incomeLavage RapideFlexible Budget Performance ReportFor the Month Ended August 31$ActualResults8,100$ 57,3006,9001,9901,8406,8608,0002,0001,84029,43027,870FlexibleBudgetPlanningBudget

A flexible budget is a budget that includes all the flexibility and change in the output. In…

Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity 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. Cars washed Revenue Expenses: Cleaning supplies Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Results 8,100 S 57,300 6,900 Flexible Budget Planning Budget

Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity 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. Cars washed Revenue Expenses: Cleaning supplies Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Results 8,100 S 57,300 6,900 Flexible Budget Planning Budget

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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Accounting Capstone - Budget Performace Variance Report
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