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 Cost per Car Washed per Month Cleaning supplies Electricity Maintenance $0.60 $ 0.08 $ 0.15 $ 0.30 $ 1,300 Wages and salaries Depreciation $ 4,000 $ 8,300 $ 2,000 $ 1,500 Rent Administrative expenses $ 0.02 For example, electricity costs should be $1,300 per month plus $0.08 per car washed. The company actually washed 8,300 cars i August and collected an average of $6.40 per car washed. Required: Prepare the company's flexible budget for August.
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 Cost per Car Washed per Month Cleaning supplies Electricity Maintenance $0.60 $ 0.08 $ 0.15 $ 0.30 $ 1,300 Wages and salaries Depreciation $ 4,000 $ 8,300 $ 2,000 $ 1,500 Rent Administrative expenses $ 0.02 For example, electricity costs should be $1,300 per month plus $0.08 per car washed. The company actually washed 8,300 cars i August and collected an average of $6.40 per car washed. Required: Prepare the company's flexible budget for August.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 8CE: Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each...
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