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Exercise 9-8 Flexible Budget (LO9-1] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following
Exercise 9-8 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: Pixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $ 0.70 $0.07 $0.10 $ 0.20 $1,300 $4,700 $ 8,500 $2,000 $1,500 $ 0.01 For example, electricity costs are $1,300 per month plus $0.07 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.30 per car washed. Required: Prepare the company's flexible budget for August. Lavage Rapide Flexible Budget For the Month Endod August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income
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