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Exercise 9-13 (Algo) Prepare a Flexible Budget Performance Report (L09-4) Lavage Rapide is a Canadian company that owns and operates a large automatic car wash
Exercise 9-13 (Algo) Prepare a Flexible Budget Performance Report (L09-4) 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 Cost per Car Washed $0.60 $0.07 $0.10 $0.30 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,100 54,600 58,400 $2,100 $1,600 $0.04 For example, electricity costs should be $1,100 per month plus $0.07 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.10 per car washed. The actual operating results for August are as follows: Lavage Rapide For the Month Ended August 31 Income Statement Actual cars washed 8,300 552, 120 Revenue Expenses Cleaning supplies Electricity Maintenance Hages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 5,420 1.640 1,060 7.420 8.400 2.300 1.28 28.072 $24.04
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