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Exercise 9-8 (Algo) Flexible Budget [LO9-1] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The

Exercise 9-8 (Algo) 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 companys costs:

Fixed Cost per Month Cost per Car Washed
Cleaning supplies $ 0.80
Electricity $ 1,000 $ 0.07
Maintenance $ 0.15
Wages and salaries $ 4,500 $ 0.30
Depreciation $ 8,300
Rent $ 2,000
Administrative expenses $ 1,600 $ 0.03

For example, electricity costs are $1,000 per month plus $0.07 per car washed. The company actually washed 8,200 cars in August and collected an average of $6.70 per car washed.

Required:

Prepare the companys flexible budget for August.

Lavage Rapide
Flexible Budget
For the Month Ended August 31
Actual cars washed
Revenue
Expenses:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
Total expense 0
Net operating income $0

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