Answered step by step
Verified Expert Solution
Link Copied!

Question

00
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 data concerning the

image text in transcribed
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 data concerning the company's costs: Fixed Cost per Month $1,200 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.80 $0.15 $0.20 $0.30 $5,000 $6,000 $8,000 $4,000 $0.10 For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 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 8,800 Revenue Expenses $ 43,000 Help Save & Exit Check IR LIURLIVE ULUS. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,800 5.43,000 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 7,560 2.670 2,260 8.See 6,000 8,000 4,950 39,940 $ 3, 140 Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and 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 Flexible Budget Performance Report Huyusu ilave ure LLUI VOLI VOILE Uy bruny variance). Input all amounts as positive values.) IUT TOVUI cure, U TU LINGVUT QUE, ON PEUT HITELE Plexib Rudhe Pertomance Report For the Mont Ended August 31 Flexible Budget Budget Rosulle 8,800 Cars washed Revenue s 43,080 Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense 7,560 2,670 2,260 8,500 6,000 8,000 4,950 39.940

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Advanced Accounting

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

10th edition

0-07-794127-6, 978-0-07-79412, 978-0077431808

Students also viewed these Accounting questions