Question
Check my work Check My Work button is now enabledItem 3 Item 3 2.5 points Lavage Rapide is a Canadian company that owns and operates
Check my work Check My Work button is now enabledItem 3 Item 3 2.5 points 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 companys costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.50 Electricity $ 1,300 $ 0.09 Maintenance $ 0.15 Wages and salaries $ 4,400 $ 0.30 Depreciation $ 8,100 Rent $ 2,200 Administrative expenses $ 1,400 $ 0.04 For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.10 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,500 Revenue $ 53,340 Expenses: Cleaning supplies 4,700 Electricity 2,026 Maintenance 1,500 Wages and salaries 7,280 Depreciation 8,100 Rent 2,400 Administrative expenses 1,636 Total expense 27,642 Net operating income $ 25,698 Required: 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.)
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