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 per Month $1,400 cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.70 $0.07 $0.30 $0.20 $4,200 $8,400 $1,900 $1,600 $0.01 For example, electricity costs are $1,400 per month plus $0.07 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $5.90 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 8,200 $ 49,890 Revenue Expenses : Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 6,170 1,937 2,670 6,180 8,400 2,100 1,581 29,038 $ 20,852 Calculate the company's revenue and spending variances for Aug favorable, "U" for unfavorable, and "None" for no effect (i.e., zer X Answer is complete but not entirely correct. Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 $ 2,100 XF Revenue 500 X U 30 XF Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation 240 X U 360 XU 0 None 200U Rent Administrative expenses 100 XF 1,170 X U Total expense $ 930 XF 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

Place Of Internal Audit And Management Control In Performance The Case Of The Bank

Authors: Hind Ben Khayat

1st Edition

6205968371, 978-6205968376

More Books

Students also viewed these Accounting questions