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Exercise 9-9 (Algo) Planning Budget [LO9-1] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The
Exercise 9-9 (Algo) Planning 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 estimates concerning the company's costs: Fixed Cost per Cost per Car Washed Month Cleaning supplies $ 0.70 Electricity $ 1,300 $ 0.07 Maintenance $ 0.10 Wages and salaries $ 4,100 $ 0.30 Depreciation $ 8,000 Rent $ 2,000 Administrative expenses. $ 1,500 $ 0.04 For example, electricity costs should be $1,300 per month plus $0.07 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.50 per car washed. Required: Prepare the company's planning budget for August. Lavage Rapide Planning Budget For the Month Ended August 31 Depreciation Rent Administrative expenses $ 8,000 $ 2,000 $ 1,500 $ 0.04 For example, electricity costs should be $1,300 per month plus $0.07 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.50 per car washed. Required: Prepare the company's planning budget for August. Lavage Rapide + Planning Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income $ SA 0
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