Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

es. Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning

es. 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: Cleaning supplies Electricity Maintenance Rent Wages and salaries Depreciation Administrative expenses For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. The company actually washed 8,800 cars in August. Revenue Expenses: Fixed Cost per Month $ 1,200 $ 5,000 $ 6,000 $ 8,000 $ 4,000 Required: Calculate the company's 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.) Lavage Rapide Activity Variances For the Month Ended August 31 Cleaning supplies Electricity Maintenance Cost per Car Washed $ 0.80 $ 0.15 $ 0.20 $ 0.30 Wages and salaries $0.10 Prev A of 6 www Next S
image text in transcribed
Lavage Rapide is a Conadian 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 $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect on overage of $4.90 per car washed. The company actually washed 8,800 cars in August: Required: Colculate the company's octivity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfovorable, and "None" for no effect (i,e., zero variance). Input all amounts as positive values.)

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

Financial Accounting For MBAs

Authors: Easton, Wild, Halsey, McAnally

7th Edition

1618532316, 978-1618532312

More Books

Students also viewed these Accounting questions

Question

What is a subordinated debenture?

Answered: 1 week ago