Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2 Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning
2 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: 4 points Cleaning supplies Electricity Maintenance Wages and salaries Depreciation eBook Rent Administrative expenses Print References Fixed Cost per Month Cost per Car Washed $ 0.80 $ 1,100 $ 0.08 $ 0.25 $ 4,800 $ 0.30 $ 8,000 $ 2,000 $ 1,400 $ 0.01 For example, electricity costs are $1,100 per month plus $0.08 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.60 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 8,400 $ 56,880 7,140 1,734 2,315 7,650 8,000 2,200 1,383 30,422 $ 26,458 2 Depreciation Rent Administrative expenses Total expense Net operating income 4 points Required: eBook Print 8,000 2,200 1,383 30,422 $ 26,458 Calculate the company's revenue and spending 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. Do not round intermediate calculations.) Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Revenue References Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started