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 carwash facility near Montreal. The following table provides data concerning the companys

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the companys costs:

image text in transcribed

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost Cost per per Month Car Washed Cleaning supplies 0.50 Electricity 1,000 0.05 Maintenance 0.20 Wages and salaries 4,100 0.40 Depreciation 8,200 Rent 2,200 Administrative expenses 1,400 0.03 For example, electricity costs are $1,000 per month plus $0.05 per car washed. The company expected to wash 8,300 cars in August and to collect an average of $6.80 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,400 58,540 Revenue Expenses Cleaning supplies 4,650 Electricity 1,385 Maintenance 1.900 Wages and salaries 7,780 Depreciation 8.200 Rent 2.400 Administrative expenses 1.549 Total expense 27,864 Net operating income 30,676 Required: Compute 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 (i.e., zero variance). Input all amounts as positive values 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

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

DOD Financial Management The Army Faces Significant Challenges In Achieving Audit Readiness For Its Military Pay

Authors: Government Accountability Office

1st Edition

1492310921, 978-1492310921

More Books

Students also viewed these Accounting questions

Question

5. If yes, then why?

Answered: 1 week ago

Question

6. How would you design your ideal position?

Answered: 1 week ago