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Exercise 9-8 Preparing a Flexible Budget [LO3] Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The
Exercise 9-8 Preparing a Flexible Budget [LO3] Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company's costs: Fixed cost Cost per per Month Car Washed Cleaning supplies $0.70 Electricity $ 3, 2ee 0.10 Maintenance 9.30 Wages and salaries 6,500 Depreciation 10,100 Rent 3,988 Administrative expenses 3,600 0.06 8.4e The company expects to charge customers an average of $7.70 per car washed. Required: Prepare a flexible budget for October assuming either 10.500 or 11,500 cars are washed. AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Budgeted Amount Per Unit (per car) Cars Washed 10.500 11,500 Variable expenses: Total variable expenses Fixed expenses: Total fixed expenses
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