Fantastic 29 Cleapers owns and operates a large automatic laundry facility in Winchester. The company expects to process 8.100 loads of laundry in June and to collect an average of $6.20 per load processed. The following table provides data concerning the company's costs: Cost per Load of Laundry $ 0.60 $0.15 $0.40 $ 0.08 Detergents and Softeners Equipment Maintenance Staff Compensation Utilities Equipment Depreciation Facility Lease Administrative Expenses $ 0.04 For example, utilities costs are $1,200 per month plus $0.08 per load of laundry. Actual loads processed Revenue Expenses: Fixed Cost per Month The actual operating results for June are as follows: Fantastic29 Cleaners Income Statement For the Month Ended June 30 Detergents and Softeners Equipment Maintenance Staff Compensation Utilities Equipment Depreciation Facility Lease $ 4,300 $1,200 $ 8,100 $ 2,000 $ 1,500 Administrative Expenses Total expense Net operating income 8,200 $52.320 5,360 1,455 7,900 8,100 2,200 1,724 28,557 $ 23,763 Required: Calculate the company's revenue and spending variances for June. dicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e, zero
Fantastic 29 Cleapers owns and operates a large automatic laundry facility in Winchester. The company expects to process 8.100 loads of laundry in June and to collect an average of $6.20 per load processed. The following table provides data concerning the company's costs: Cost per Load of Laundry $ 0.60 $0.15 $0.40 $ 0.08 Detergents and Softeners Equipment Maintenance Staff Compensation Utilities Equipment Depreciation Facility Lease Administrative Expenses $ 0.04 For example, utilities costs are $1,200 per month plus $0.08 per load of laundry. Actual loads processed Revenue Expenses: Fixed Cost per Month The actual operating results for June are as follows: Fantastic29 Cleaners Income Statement For the Month Ended June 30 Detergents and Softeners Equipment Maintenance Staff Compensation Utilities Equipment Depreciation Facility Lease $ 4,300 $1,200 $ 8,100 $ 2,000 $ 1,500 Administrative Expenses Total expense Net operating income 8,200 $52.320 5,360 1,455 7,900 8,100 2,200 1,724 28,557 $ 23,763 Required: Calculate the company's revenue and spending variances for June. dicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e, zero
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 4EB: Roper Furniture manufactures office furniture and tracks cost data across their process. The...
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