Refer to the data in Exercise 13.1. Lavage Rapide’s actual level of activity during August was 8,900 cars, although the owner had constructed his static budget for the month assuming the level of activity would be 8,800 cars. The actual overhead costs incurred during August are given below:

Required
Prepare a flexible budget performance report for both the variable and fixed overhead costs for August. Use Exhibit 13.4 in the chapter as your guide.

Data from Exercise 13.1

An incomplete flexible budget is given below for Lavage Rapide, a Swiss company that owns and operates a large automatic carwash facility near Geneva. The Swiss currency is the Swiss franc, which is denoted by SFr.

Exhibit 13.4

Transcribed Image Text:

Variable overhead costs: Cleaning supplies Electricity Maintenance Fixed overhead costs: Operator wages Depreciation Rent Actual costs incurred for 8,900 cars 7,080 SFr 2,460 1,550 9,100 7,000 8,000