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

image text in transcribedimage 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: Cleaning supplies Electricity Fixed Cost per Month Cost per Car Washed $ 0.70 $1,200. $ 0.06 $ 0.25 $4,700 $ 0.30 eBook Print References Maintenance Wages and salaries Depreciation Rent Administrative expenses $8,500 $1,900 $ 1,600 $ 0.02 For example, electricity costs should be $1,200 per month plus $0.06 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.10 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 $:50,900 Cleaning supplies 6,100 Electricity 1,650 Maintenance 2,240 Magen and salaries 7,460 Depreciation 8,500 Kent 2,100 Administrative expenses 1,660 29,710 $21,190 Total expense Het operating income Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. Note: 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.

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

Managerial Accounting

Authors: Ray H Garrison, Alan Webb, Theresa Libby

11th Canadian Edition

1259275817, 978-1259275814

More Books

Students also viewed these Accounting questions