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: Tixed cost Cost per per month Car Washed Cleaning supplies $0.60 lecteity $1,000 30.09 Maintenance Wages and salarios $4,700 $0.40 Depreciation 58,300 61.900 Administrative expenses 91,800 30.01 50.15 ht For example, electricity costs should be $1.000 per month plus $0 09 per car washed. The company expects to wash 8.100 cars in August and to collect an average of $6.10 per car washed. The company actually washed 8.200 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 (.e. zero variance). Input all amounts as positive values.) Lavage Rapide Activity Variances For the Month Ended August 31 Raven Cleaning suppies Electricity Maintenance Wages and was Depreciation Rar Administrative expenses Depreciation Rent Administrative expenses $8,300 $1,900 $1,800 $0.01 For example, electricity costs should be $1,000 per month plus $0.09 pe August and to collect an average of $6.10 per car washed. The company Required: Calculate the company's activity variances for August. (Indicate the effect unfavorable, and "None" for no effect (i.e., zero variance). Input all amor Lavage Rapide Activity Variances For the Month Ended August 31 Revenue 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

Accounting Tools for Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

5th edition

9780470418239, 470239808, 9780470239803, 470418230, 978-1118128169

Students also viewed these Accounting questions