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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Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. Budgeted Gross Margin SHADEE CORPORATION Budgeted Income Statement Budgeted Net Operating Income May June
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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.
TV Timers, Incorporated, manufactures time control devices for TV's. The firm has the following operating data for its operations in July: Actual market size Budgeted market size Actual market share Budgeted market share Budgeted average contribution margin Actual average contribution margin What is the company's market share variance? A. $1,590 favorable. B. $1,784 favorable. C. $1,740 favorable. D. $2,070 favorable. E. $3,660 favorable. 14,500 16,300 34% 32% $6.00 $5.25
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February: Variable Fixed Component per Month Component per Job $ 277 Actual Total for February $ 27,720 $ 8,350 $ 8,370 Revenue Technician wages $ 8,500 Mobile lab operating expenses $ 4,900 $ 33 Office expenses $ 2,400 $2 $ 2,470 Advertising expenses $ 1,600 $ 1,670 Insurance $ 2,850 $ 2,850 Miscellaneous expenses $ 960 $ 1 $ 375 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $33 per job, and the actual mobile lab operating expenses for February were $8,370. The company expected to work 110 jobs in February, but actually worked 120 jobs. Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February. (Indicate the effect of each variance by selecting "F"…
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Accounting Capstone - Budget Performace Variance Report
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