Question
Exercise 9-13 Flexible Budget Performance Report [LO4] Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The
Exercise 9-13 Flexible Budget Performance Report [LO4]
| Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the companys costs: |
| Fixed Cost per Month | Cost per Car Washed | ||||
| Cleaning supplies | $ | 0.40 | |||
| Electricity | $ | 1,300 | $ | 0.06 | |
| Maintenance | $ | 0.10 | |||
| Wages and salaries | $ | 4,100 | $ | 0.20 | |
| Depreciation | $ | 8,300 | |||
| Rent | $ | 1,900 | |||
| Administrative expenses | $ | 1,400 | $ | 0.01 | |
| For example, electricity costs are $1,300 per month plus $0.06 per car washed. The company expects to wash 8,200 cars in October and to collect an average of $5.90 per car washed. |
| The actual operating results for October appear below: |
| Auto Lavage Income Statement For the Month Ended October 31 | ||
| Actual cars washed | 8,300 | |
| Revenue | $ | 50,480 |
| Expenses: | ||
| Cleaning supplies | 3,780 | |
| Electricity | 1,762 | |
| Maintenance | 1,060 | |
| Wages and salaries | 6,100 | |
| Depreciation | 8,300 | |
| Rent | 2,100 | |
| Administrative expenses | 1,382 | |
| Total expense | 24,484 | |
| Net operating income | $ | 25,996 |
| Required: |
| Complete the flexible budget performance report that shows the companys activity variances and revenue and spending variances for October. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.) |
| Auto Lavage Flexible Budget Performance Report For the Month Ended October 31 | ||||
| Activity Variances | Revenue and Spending Variances | |||
| Revenue | $ | (Click to select)FNoneU | $ | (Click to select)FNoneU |
| Expenses: | ||||
| Cleaning supplies | (Click to select)FUNone | (Click to select)UFNone | ||
| Electricity | (Click to select)UFNone | (Click to select)NoneUF | ||
| Maintenance | (Click to select)UFNone | (Click to select)FUNone | ||
| Wages and salaries | (Click to select)NoneUF | (Click to select)NoneUF | ||
| Depreciation | (Click to select)NoneFU | (Click to select)NoneUF | ||
| Rent | (Click to select)FNoneU | (Click to select)UFNone | ||
| Administrative expenses | (Click to select)FNoneU | (Click to select)UFNone | ||
| Total expense | (Click to select)UFNone | (Click to select)NoneUF | ||
| Net operating income | $ | (Click to select)UFNone | $ | (Click to select)UFNone |
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