Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fixed Coat per Month $1,100 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.50 $0.09 $0.30 $0.20 $4,800

image text in transcribed
Fixed Coat per Month $1,100 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.50 $0.09 $0.30 $0.20 $4,800 $8,200 $2,100 $1,300 $0.04 For example, electricity costs are $1,100 per month plus $0.09 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $610 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Inded August 31 Actual cars washed 8,600 Revenue $ 53,950 Expenses Cleaning supplies 4,750 Electricity 1.835 Maintenance 2,790 Wages and salaries 6,860 Depreciation 8.200 Rent 2.300 Administrative expenses 1,540 Total expense 28,275 Bet operating income $ 25,675 Required: Calculate the company's revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (ie, zero variance). Input all amounts as positive values.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

Write formal and informal proposals.

Answered: 1 week ago

Question

Describe the components of a formal report.

Answered: 1 week ago

Question

Write formal and informal reports.

Answered: 1 week ago