Exercise 9-10 Planning Budget [LO9-1) 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 company's costs: Fixed Cost per Month Cost per Car Washed $ 0.40 $0.05 $0.15 $0.30 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation $ 1,500 $ 4,800 $ 8,400 $ 2.100 $1,700 Rent Administrative expenses For example, electricity costs are $1,500 per month plus $0.05 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.80 per car washed. For example, electricity costs are $1,500 per month pli and to collect an average of $6.80 per car washed. Required: Prepare the company's planning budget for August. Lavage Rapide Planning Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income | 0 Exercise 9-11 Flexible Budget (LO9-1) 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 company's costs: Fixed Cost per Month Cost per Car Washed $0. .400 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses S 0.08 $ 0.20 0.30 000 For example, electricity costs are $1,400 per month plus $0.08 per car washed. The company actually washed 8,200 cars in August and collected an average of $6.70 per car washed. For example, electricity costs are $1,400 per month plus $0 and collected an average of $6.70 per car washed. Required: Prepare the company's flexible budget for August. Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses: | Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income | $ 0 Exercise 9-12 Activity Variances [LO9-2] 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 company's costs: Fixed Cost per Month Cost per Car Washed $0.60 $0.99 $0.15 $e.se $1,400 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses es $ 34,600 $1,800 $8,2ee $e.e2 For example, electricity costs are $1,400 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.70 per car washed. The company actually washed 8,500 cars in August. 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.) res Lavage Rapide Activity Variances For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance | Wages and salaries Depreciation | Rent Administrative expenses Total expense Net operating income 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 company's costs: Fixed Cost per Month Ints $1,200 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.6e $0.08 $9.29 $0.40 eBook $4,100 $8,400 $2,200 $1,500 Print se. eferences For example, electricity costs are $1,200 per month plus $0.08 per car washed. The company expects to wash 8.400 cars in August and to collect an average of $5.90 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 8,500 $ 51,660 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation 5,548 1,842 1.920 7,828 8,400 Rent Administrative expenses Total expense Net operating income 2.400 1.568 29,490 $ 22,178 Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation | Rent Administrative expenses Total expense Net operating income
