Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For example, electricity costs should be $1,500 per month plus $0.05 per car washed. The company expects to wash 8,100 cars in August and to

image text in transcribed
image text in transcribed
For example, electricity costs should be $1,500 per month plus $0.05 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.80 per car washed. The actual operating results for August ate as follows: Required: Calculate the company's revenue and spending variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, " U " for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Lavage Rapide } \\ \hline \multicolumn{3}{|c|}{ Revenue and Spending Variances } \\ \hline \multicolumn{3}{|c|}{ For the Month Ended August 31} \\ \hline Revenue & 2,100 & F \\ \hline \multicolumn{3}{|l|}{ Expenses: } \\ \hline Cleaning supplies & (500) & u \\ \hline Electricity & 1,875 & F \\ \hline Maintenance & & u \\ \hline Wages and salaries & & u \\ \hline Depreciation & 0 & None \\ \hline Rent & 200 & 0 \\ \hline Administrative expenses & & F \\ \hline Total expense & & u \\ \hline Net operating income & & F \\ \hline \end{tabular} For example, electricity costs should be $1,500 per month plus $0.05 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.80 per car washed. The actual operating results for August ate as follows: Required: Calculate the company's revenue and spending variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, " U " for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values. \begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ Lavage Rapide } \\ \hline \multicolumn{3}{|c|}{ Revenue and Spending Variances } \\ \hline \multicolumn{3}{|c|}{ For the Month Ended August 31} \\ \hline Revenue & 2,100 & F \\ \hline \multicolumn{3}{|l|}{ Expenses: } \\ \hline Cleaning supplies & (500) & u \\ \hline Electricity & 1,875 & F \\ \hline Maintenance & & u \\ \hline Wages and salaries & & u \\ \hline Depreciation & 0 & None \\ \hline Rent & 200 & 0 \\ \hline Administrative expenses & & F \\ \hline Total expense & & u \\ \hline Net operating income & & F \\ \hline \end{tabular}

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

Recommended Textbook for

Sustainability Performance And Reporting

Authors: Irene M. Herremans

1st Edition

1951527208, 9781951527204

More Books

Students also viewed these Accounting questions

Question

List the various types of sponsorship.

Answered: 1 week ago

Question

Distinguish between a priori and a posteriori knowledge.

Answered: 1 week ago