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 $ 0.03 For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $5.90 per car washed. The actual operating results for August are as follows: Rent Actual cars washed Revenue Lavage Rapide Income Statement For the Month Ended August 31 Expenses: cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost per Cost per Month Car Washed $ 0.70 $ 1,100 $ 0.08 $ 0.30 $ 4,900 $ 0.20 $ 8,200 $ 2,200 $ 1,700 Administrative expenses Total expense Net operating income 8,500 $ 51,660 6,380 1,742 2,760 6,940 8,200 2,400 1,852 30,274 $ 21,386 Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and 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., zere 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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses $ 0.03 For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $5.90 per car washed. The actual operating results for August are as follows: Rent Actual cars washed Revenue Lavage Rapide Income Statement For the Month Ended August 31 Expenses: cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost per Cost per Month Car Washed $ 0.70 $ 1,100 $ 0.08 $ 0.30 $ 4,900 $ 0.20 $ 8,200 $ 2,200 $ 1,700 Administrative expenses Total expense Net operating income 8,500 $ 51,660 6,380 1,742 2,760 6,940 8,200 2,400 1,852 30,274 $ 21,386 Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and 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., zere variance). Input all amounts as positive values.)
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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