Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

can you please show steps, as i am trying to understand how to work this problem? i will rate. thank you Lavage Rapide is a

can you please show steps, as i am trying to understand how to work this problem? i will rate. thank you image text in transcribedimage text in transcribed

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: 5 0.7 points Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost Cost per per Month Car Washed $ 0.60 $ 1,000 $ 0.07 $ 0.30 $ 4,100 $ 0.20 $ 8,400 $ 2,000 $ 1,500 $ 0.04 eBook References For example, electricity costs should be $1,000 per month plus $0.07 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.00 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 8,400 Revenue $ 51,900 Expenses: Cleaning supplies 5,480 Electricity 1,551 Maintenance 2,730 Wages and salaries 6, 120 Depreciation 8,400 Rent 2,200 Administrative expenses 1,732 Total expense 28, 213 Net operating income $ 23,687 Required: 5 Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity 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.) 0.7 points Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 eBook Actual Results Flexible Budget Planning Budget References Cars washed 8,400 Revenue $ 51,900 Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent 5,480 1,551 2,730 6,120 8,400 2,200 Administrative expenses 1,732 Total expense 28,213 23,687 Net operating income $

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

Step: 3

blur-text-image

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

Horngrens Financial & Managerial Accounting

Authors: Tracie Miller Nobles, Brenda Mattison

7th Edition

0136516254, 9780136516255

More Books

Students also viewed these Accounting questions

Question

What are the prerequisites for such a scheme to work successfully?

Answered: 1 week ago