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Cleaning supplies $ 0.50 Electricity $ 1,400 $ 0.05 Maintenance $ 0.25 Wages and salaries $ 4,000 $ 0.30 Depreciation $ 8,400 Rent $ 1,900
Cleaning supplies $ 0.50 Electricity $ 1,400 $ 0.05 Maintenance $ 0.25 Wages and salaries $ 4,000 $ 0.30 Depreciation $ 8,400 Rent $ 1,900 Administrative expenses $ 1,800 $ 0.03 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: For example, electricity costs should be $1,400 per month plus $0.05 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 Expenses: $ 51,900 Cleaning supplies
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