3 questions:

9-7

9-8

9-9

EXERCISE 9-7 Planning Budget L09-1 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 $0.80 Electricity $ 1,200 $ 0.15 Maintenance $0.20 Wages and salaries $5,000 $0.30 Depreciation $6,000 Rent $8.000 Administrative expenses $4,000 $ 0.10 Page 428 For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. Required: Using Exhibit 9-2 as your guide, prepare the company's planning budget for August EXERCISE 98 Flexible Budget L09-1 Refer to the data for Lavage Rapide in Exercise 9-7. The company actually washed 8,800 cars in August. Required: Using Exhibit 9-5 as your guide, prepare the company's flexible budget for August. EXERCISE 9-9 Prepare a Report Showing Revenue and Spending Variances LO9-2 Refer to the data for Lavage Rapide in Exercise 9-7. Also assume that the company's actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,800 Revenue $43,080 Expenses: Cleaning supplies 7,560 Electricity 2,670 Maintenance 2,260 Wages and salaries 8,500 Depreciation 6,000 Rent 8,000 Administrative expenses 4,950 Total expense 39,940 Net operating income $ 3,140 Required: Calculate the company's revenue and spending variances for August. (Hint: Refer to Exhibit 9-6.)