Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company's expected costs: Cost per Fixed Cost per Month Car Washed $0.90 $0.30 $0.50 $0.60 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $2,600 $5,800 $9,400 $3,200 $ 2.910 $0.05 For example, electricity costs are $2,600 per month plus $0.30 per car washed. The company expects to wash 9100 cars in October and to collect an average of $8.00 per car washed Auto Lavage's actual level of activity was 9.200 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 9.200 Sales $78,000 Auto Lavage's actual level of activity was 9,200 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 9,200 Sales $78,000 Variable expenses: Cleaning supplies Electricity Maintenance Wages and salaries Administrative Fixed expenses: Electricity Wages and salaries Depreciation Rent Administrative 8,515 2,822 4.350 5,860 510 2,660 5,800 9,400 3,200 2.845 Total expense 45.962 Net operating income $32,038 Required: Prepare a flexible budget performance report for October. (Indicate the effect of 1. each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) AUTO LAVAGE INC. Flexible Budget Performance Report For the Month Ended October 31 Cost Formula Actual Flexible Budget (per car) Flexible Budget Variance Variable Expenses Total variable expenses Fixed expenses 2. Prepare a comprehensive performance report for October using. Assume that the static budget for October was based on an activity level of 9100 cars. (Indicate the effect of each variance by selecting "F" for favourable. "U" for unfavourable, and "None" for no effect (.e., zero variance).) AUTO LAVAGE INC Comprehensive Performance Report For the Month Ended October 31 Flexible Actual cars Flexible Budget Budget Variance cars 9 200 9.200 Sales Volume Variance Static Budget Cars 9,100 Vanable Expenses Total variable expenses Fixed expenses

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit And Assurance Principles And Practices In Singapore

Authors: Dr Ernest Kan

5th Edition

9814838136, 978-9814838139

More Books

Students also viewed these Accounting questions