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 tat provides data 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 tat provides data concerning the company's costs Fixed cost Cost per per Month Car Washed Cleaning supplies se.ze Electricity $1,200 $0.07 Maintenance $0.25 Wages and salaries $4,200 $0.40 Depreciation $8,eee Rent $2,109 Administrative expenses $1,700 se.4 For example, electricity costs are $1.200 per month plus $0 07 per car washed. The company expects to wash 8,200 cars in Augus and to collect an average of $6.50 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 8,300 $ 55,400 Revenue Expenses : Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 6,240 2,744 2,290 7,840 8,eee 2,300 1,928 30,342 $ 25,058 Required: Calculate the company's revenue and spending variances for August (Indicate the effect of each variance by selecting "F favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do no intermediate calculations.) Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Revenue $ 8,300F Expenses Cleaning supplies 6,240F Electricity Maintenance Wages and salarios 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

Fundamental accounting principle

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

21st edition

1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587

More Books

Students also viewed these Accounting questions

Question

Describe how to use SWOT analysis in formulating strategy.

Answered: 1 week ago