Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Fixed Cost Cost per Car per Month washed Cleaning supplies $ 0.80 Electricity $ 1,200 $ 0.15 Maintenance $ 0.20 Wages and salaries $ 5,800

image text in transcribed
image text in transcribed
Fixed Cost Cost per Car per Month washed Cleaning supplies $ 0.80 Electricity $ 1,200 $ 0.15 Maintenance $ 0.20 Wages and salaries $ 5,800 $ 0.30 Depreciation $ 6,000 Rent 5 8,000 Administrative expenses $.4,000 $ 0.10 For example, electricity costs are $1,200 per month plus $0.15 per car washed, The company expects to wash 9,000 cars in Augu and to collect an average of $4.90 per car washed The actual operating results for August are as follows: Lavage Rapide "Income Statement For the Month Ended August 31 Actual cars washed 8,800 Revenue $ 43,000 Expenses: Cleaning supplies 7,560 Electricity 2,670 Maintenance 2,260 Hages and salaries 3,500 Depreciation 6,000 Rent 8,000 Administrative expenses 4.950 Tata 20 W The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,800 Revenue $ 43,080 Expenses Cleaning supplies 7.560 Electricity 2,670 Maintenance 2,260 Wages and salaries 8.500 Depreciation 6,000 Rent 8.000 Administrative expenses 4,950 Total expense 39,940 Net operating income $ 3,140 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. Do not round intermediate calculations.)

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_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Accounting And Finance For Your Small Business

Authors: Eric James Burton, Steven M Bragg

1st Edition

9780471323600

More Books

Students also viewed these Accounting questions

Question

Assess the requirements for strategic LMD

Answered: 1 week ago

Question

How can e-learning benefit organizations and individuals?

Answered: 1 week ago