Auto Lavage is a Canadian company that owns and operates a large automatic car wash facility near

Question:

Auto Lavage is a Canadian company that owns and operates a large automatic car wash facility near Quebec. The following table provides data concerning the company's costs:

Fixed Cost Cost per Car Washed per Month $0.70 Cleaning supplies Electricity . $1,400 0.10 Maintenance 0.30 Wages and sa


The company expects to charge customers an average of $5.90 per car washed.


Required:

Using Exhibit 9-3 as your guide, prepare a flexible budget for October assuming either 8,000 or 9,000 cars are washed.

Exhibit 9-3

PATTERSON FRAMING LIMITED Flexible Budget For the Year Ending December 31, 2018 Budgeted Amount Sales in Units per Unit

*Per unit amount as per Schedule 6

Schedule 6


*variable overhead cost per hour (Schedule 5) multiplied by direct labour-hours per unit (Schedule 6): $2 × 0.5 = $1.00.

Schedule 5


† Per unit amount as per Schedule 7.

Schedule 7


**Total budgeted fixed overhead expense as per Schedule 5.

**Total budgeted fixed selling and administrative expenses as per Schedule 7.

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Related Book For  book-img-for-question

Managerial Accounting

ISBN: 9781259275814

11th Canadian Edition

Authors: Ray H Garrison, Alan Webb, Theresa Libby

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