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: Fixed Cost Cost per per Month Car Washed Cleaning supplies Electricity Maintenance $0.70 $1,100 $0.09 $0.20 $0.30 Wages and salaries Depreciation $4,400 $8,300 $2,000 $1,500 Rent Administrative expenses $0.02 For example, electricity costs are $1,100 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.70 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,400 Revenue $ 57,710 Expenses: Cleaning supplies Electricity Maintenance 6,310 1,817 1,900 7,250 8,300 2,200 1,566 29,343 $ 28,367 Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 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., zero variance). Input all amounts as positive values.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Planning Budget Actual Flexible Results Budget Cars washed 8,400 Revenue $ 57,710 Expenses: Cleaning supplies 6,310 Electricity 1,817 Maintenance 1,900 Wages and salaries 7,250 Depreciation 8,300 Rent 2,200 Administrative expenses 1,566 Total expense 29,343 Net operating income 28,367
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: Fixed Cost Cost per per Month Car Washed Cleaning supplies Electricity Maintenance $0.70 $1,100 $0.09 $0.20 $0.30 Wages and salaries Depreciation $4,400 $8,300 $2,000 $1,500 Rent Administrative expenses $0.02 For example, electricity costs are $1,100 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.70 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,400 Revenue $ 57,710 Expenses: Cleaning supplies Electricity Maintenance 6,310 1,817 1,900 7,250 8,300 2,200 1,566 29,343 $ 28,367 Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 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., zero variance). Input all amounts as positive values.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Planning Budget Actual Flexible Results Budget Cars washed 8,400 Revenue $ 57,710 Expenses: Cleaning supplies 6,310 Electricity 1,817 Maintenance 1,900 Wages and salaries 7,250 Depreciation 8,300 Rent 2,200 Administrative expenses 1,566 Total expense 29,343 Net operating income 28,367
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 4EB: Roper Furniture manufactures office furniture and tracks cost data across their process. The...
Related questions
Question
please help
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College