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 salariesDepreciationRentForActual cars washedRevenueExpenses:Administrative expenses$ 0.03For example, electricity costs should be $1,200 per month plus $0.09 per car washed. The company expects to wash 8,100 cars inAugust and to collect an average of $6.70 per car washed.The actual operating results for August are as follows:Lavage RapideIncome Statementthe Month Ended August 31Cleaning supplies.ElectricityMaintenanceWages and salariesDepreciationRentFixed Cost Cost perper Month Car Washed$0.40$ 0.09$0.15$0.30Administrative expensesTotal expenseNet operating incom$1,200$4,700$ 8,200$1,900$ 1,6008,200$ 56,3703,7401,8991,4557,4908,2002,1001,74326,627$ 29,74) 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 washedRevenueExpensesCleaning suppliesElectricityMaintenanceWages and salanesDepreciationRentAdministrative expensesTotal expenseNet operating incomeLavage RapideFlexible Budget Performance ReportFor the Month Ended August 31ActualResults8,200$ 56,370$3,7401,8001,4557,4908,2002,1001,74326,62729,743FlexibleBudgetPlanningBudget

Variances are the differences between the actual values and budgeted values. If the budgeted values…

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 Rent Lavage Rapide Income Statement Administrative expenses $ 0.03 For example, electricity costs should be $1.200 per month plus $0.09 per car washed. The company expects to wash 8.100 cars in August and to collect an average of $6.70 per car washed. The actual operating results for August are as follows: Actual cars washed Revenue Expenses: For the Month Ended August 31 Cleaning supplies Electricity Maintenance Rent Mages and salaries Depreciation Fixed Cost per Month $ 1,200 $4,700 $ 8,200 $1,900 $1,600 Administrative expenses Total axpense Net operating income Cost per Car Washed $0.40 8,200 $56,370 3,740 1,899 1,455 7,490 8,200 $ 0.09 $ 0.15 $0.30 2,100 1,743 26,627 $ 29,743

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 Rent Lavage Rapide Income Statement Administrative expenses $ 0.03 For example, electricity costs should be $1.200 per month plus $0.09 per car washed. The company expects to wash 8.100 cars in August and to collect an average of $6.70 per car washed. The actual operating results for August are as follows: Actual cars washed Revenue Expenses: For the Month Ended August 31 Cleaning supplies Electricity Maintenance Rent Mages and salaries Depreciation Fixed Cost per Month $ 1,200 $4,700 $ 8,200 $1,900 $1,600 Administrative expenses Total axpense Net operating income Cost per Car Washed $0.40 8,200 $56,370 3,740 1,899 1,455 7,490 8,200 $ 0.09 $ 0.15 $0.30 2,100 1,743 26,627 $ 29,743

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4EA: Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on...

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Dog 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: Fixed Cost per MonthCost per Car WashedCleaning supplies $ 0.80Electricity$ 1,200$ 0.15Maintenance $ 0.20Wages and salaries$ 5,000$ 0.30Depreciation$ 6,000 Rent$ 8,000 Administrative 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 in August and to collect an average of $4.90 per car washed. The company actually washed 8,800 cars in August. Required: Calculate the company's activity variances for August. (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.)
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: For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. The company actually washed 8,800 cars in August. Required: Calculate the company's activity variances for August. (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.)
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Rent Wages and salaries Depreciation Administrative expenses For example, electricity costs are $1,400 per month plus $0.06 per car washed. The company actually washed 8,200 cars in August and collected an average of $6.60 per car washed. Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses: Required: Prepare the company's flexible budget for August. Cleaning supplies Electricity Maintenance Fixed Cost per Month $ 1,400 Wages and salaries Depreciation Rent Cost per Car Washed $ 0.60 $ 0.06 $ 0.25 $ 0.20 $ 4,700 $ 8,500 $ 1,900 $ 1,300 $ 0.05 с
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