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 estimates concerning the

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 estimates concerning the company's costs: Fixed Cost per Month Cost per $1,000 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Car Warbed $0.50 $0.09 $0.20 $0.30 $4.700 $8,300 $2,200 $1,800 $0.02 For example, electricity costs should be $1,000 per month plus $0.09 per car washed. The company expects to wash 8.200 cars in August and to collect an average of $6.90 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement for the Month Ended August 1 Aatus Car Washed 300 550.600 Revenue Expenses Cleaning supplies Electricity Maintenance Ways and salaries Depreciation Rone Udministrative expenses Total expense Het operating in 4.600 1.708 1,80 7.520 8,300 2.400 1.566 28,222 10,400 Administrative expenses Total expense Net operating income 1,864 28,272 $ 30,408 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 (i.e., zero variance). Input all amounts as positive values.) Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Revenge 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

The Taxpayers Rights Before During And After The Tax Audit In Cameroon

Authors: Salomon Malang II

1st Edition

6205877058, 978-6205877050

More Books

Students also viewed these Accounting questions

Question

Networking is a two-way street. Discuss this statement.

Answered: 1 week ago