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Exercise 9-11 (Algo) Activity Variances [LO9-2] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal.
Exercise 9-11 (Algo) 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 estimates concerning the company's costs: Fixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.80 $ 1,300 $0.09 $0.20 $ 4,800 $ 8,400 $ 0.20 $ 2,000 $1,400 $ 0.03 For example, electricity costs should be $1,300 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.60 per car washed. The company actually washed 8,400 cars in August.
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