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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
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 companys costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ Electricity $ $ Maintenance $ Wages and salaries $ $ Depreciation $ Rent $ Administrative expenses $ $ For example, electricity costs should be $ per month plus $ per car washed. The company expects to wash cars in August and to collect an average of $ per car washed. The company actually washed cars in August. Required: Calculate the company's activity variances for August. Indicate the effect of each variance by selecting F for favorable, U for unfavorable, and "None" for no effect ie zero variance Input all amounts as positive values. Lavage Rapide Revenue and Spending Variances For the Month Ended August Revenue $selected answer incorrect Uselected answer correct Expenses: Cleaning supplies not attempted Uselected answer correct Electricity not attempted Uselected answer correct Maintenance not attempted Uselected answer correct Wages and salaries not attempted Uselected answer correct Depreciation selected answer correct Noneselected answer correct Rent selected answer correct Noneselected answer correct Administrative expenses not attempted Uselected answer correct Total expense not attempted Uselected answer correct Net operating income
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 companys costs:
Fixed Cost per Month Cost per Car Washed
Cleaning supplies $
Electricity $ $
Maintenance $
Wages and salaries $ $
Depreciation $
Rent $
Administrative expenses $ $
For example, electricity costs should be $ per month plus $ per car washed. The company expects to wash cars in August and to collect an average of $ per car washed. The company actually washed cars in August.
Required:
Calculate the company's activity variances for August. Indicate the effect of each variance by selecting F for favorable, U for unfavorable, and "None" for no effect ie zero variance Input all amounts as positive values.
Lavage Rapide
Revenue and Spending Variances
For the Month Ended August
Revenue $selected answer incorrect Uselected answer correct
Expenses:
Cleaning supplies not attempted Uselected answer correct
Electricity not attempted Uselected answer correct
Maintenance not attempted Uselected answer correct
Wages and salaries not attempted Uselected answer correct
Depreciation selected answer correct Noneselected answer correct
Rent selected answer correct Noneselected answer correct
Administrative expenses not attempted Uselected answer correct
Total expense not attempted Uselected answer correct
Net operating income
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