ACC 381 Chapter 10 Handout Problem #1 Jag Inc. operates a car wash. Incoming cars are put on an automatic conveyor belt. Cars are washed as the conveyor belt carries them from the start station to the finish station. After a car moves off the conveyor belt, it is dried manually. Workers then clean and vacuum the inside of the car. Jag Inc. serviced 80,000 cars in 2013 and reports the following costs incurred in 2013: Costs $260,000 42,000 38,000 72,000 64,000 46,000 Account Description Cash wash labor Soap, cloth, and supplies Water Electric power to move conveyor belt Depreciation Salaries Classify each account as variable or fixed with regard to the number of cars washed. 1. 2. in requirement 1 to estimate Jag Inc.'s total costs in 2014. Depreciation is computed straight-line basis and no changes were made to salaries. Suppose Jag Inc. washed 90,000 cars in 2014. Use the cost classification you developed on a