Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the

image text in transcribed
image text in transcribed
image text in transcribed
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs Fixed Cost Cost per Car per Month Washed Cleaning supplies $ 0.50 Electricity $ 1,300 $ 8.09 Maintenance $.9.20 Wages and salaries $ 4,100 $0.30 Depreciation $ 8,100 Rent $ 1,900 Administrative expenses 3.1.500 $ 0.04 For example, electricity costs are 51,300 per month plus $0.09 per car washed. The company expects to wash 8,000 cars in August and to collect an average of 55.90 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 8,100 Revenue 549,300 Expenses The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,180 Revenue $.49,300 Expenses: Cleaning supplies 4,50e Electricity 1.99e Maintenance 1,84e Wages and salaries 6,860 Depreciation 8,100 Rent 2.100 Administrative expenses 1.720 Total expense 27.112 Net operating income $ 22,190 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 (le, zero variance). Input all amounts as positive values. Do not round intermediate calculations.) Lavage Rapide Calculate the company's revenue and spending variances for August. (Indicate t favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). In intermediate calculations.) Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income

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

The Lean Audit A Detailed User Guide For The Lean Factory Audit Online

Authors: Isaias Wallaker

1st Edition

B09R3HXJ11, 979-8408651320

More Books

Students also viewed these Accounting questions