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

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 $ 0.50
Electricity $ 1,100 $ 0.08
Maintenance $ 0.20
Wages and salaries $ 4,500 $ 0.20
Depreciation $ 8,000
Rent $ 2,000
Administrative expenses $ 1,300 $ 0.02

For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.80 per car washed. The company actually washed 8,300 cars in August.

Required:

Calculate the company's 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

ISE Fundamentals Of Cost Accounting

Authors: William N. Lanen, Shannon Anderson, Michael W. Maher

7th Edition

1265117705, 9781265117702

More Books

Students also viewed these Accounting questions

Question

If h(x) = (f g)(x), find h 1 in terms of f 1 and g 1 .

Answered: 1 week ago