Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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: Fixed Cost Cost per Car Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses per Month Washed $ 0.80 $ 1,200 $ 0.15 $ 0.20 $ 5,000 $ 0.30 $ 6,000 $ 8,000 $ 4,000 $ 0.10 For example, electricity costs should be $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 company actually washed 8,800 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 (i.e., zero variance). Input all amounts as positive values.) Lavage Rapide Activity Variances For the Month Ended August 31 Revenue $ 44,100 U Expenses: Cleaning supplies 7,200 F Electricity 2,550 F Maintenance 1,800 F Wages and salaries 7,700 F Depreciation 6,000 None Rent 8,000 None Administrative expenses 4,900 F Total expense 39,040 F Net operating income U 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: Fixed Cost Cost per Car Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses per Month Washed $ 0.80 $ 1,200 $ 0.15 $ 0.20 $ 5,000 $ 0.30 $ 6,000 $ 8,000 $ 4,000 $ 0.10 For example, electricity costs should be $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 company actually washed 8,800 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 (i.e., zero variance). Input all amounts as positive values.) Lavage Rapide Activity Variances For the Month Ended August 31 Revenue $ 44,100 U Expenses: Cleaning supplies 7,200 F Electricity 2,550 F Maintenance 1,800 F Wages and salaries 7,700 F Depreciation 6,000 None Rent 8,000 None Administrative expenses 4,900 F Total expense 39,040 F Net operating income U
Expert Answer:
Answer rating: 100% (QA)
To calculate the activity variances for Lavage Rapide for the month of August we need to compare the actual activity level with the budgeted activity ... View the full answer
Related Book For
Managerial Accounting
ISBN: 9781259275814
11th Canadian Edition
Authors: Ray H Garrison, Alan Webb, Theresa Libby
Posted Date:
Students also viewed these accounting questions
-
Population Distribution by Ethic Category: 1790 . Ethnic Category Number Percent English 2,100,000 53.76% Ulster Scot-Irish 300,000 7.68% German 270,000 6.91% Scottish 150,000 3.84% Dutch 100,000...
-
A 50.00-mL solution of 0.0304 M ethanolamine (Kb = 3.2 x 10-5) is titrated with a 0.0282 M solution of hydrochloric acid as the titrant. What is the pH of the base solution after 23.24 mL of titrant...
-
What can cause division between relatives?
-
Two kilograms of water, initially saturated liquid at 10 kPa, are heated to saturated vapor while the pressure is maintained constant. Determine the work and the heat transfer for the process, each...
-
In December 2005, Bill Stock, general manager for the Louisiana Division of Coastal States Chemicals and Fertilizers, received a letter from Fred McNair of the Cajan Pipeline Company, which notified...
-
A random sample of 200 items reveals that 144 of the items have the attribute of interest. a. What is the point estimate for the population proportion for all items having this attribute? b. Use the...
-
Visit 10 Web sites that sell products or services and record the URL of each. Evaluate each site's published privacy policy in terms of the conditions need for compliance with the Safe Harbor...
-
Suppose there are only two people in society. The demand curve for person A for mosquito control is given by qA = 100 P For person B, the demand curve for mosquito control is given by qB = 200 P a....
-
A bond issued at par value is when the coupon rate equals the market yield (effective rate). Select one: O True O False The discount on bonds payable account has a normal debit balance. Select one: O...
-
12.2 Two waves traveling together along the same line are represented by y1 = 25 sin (wt - ) and y2 = 15 sin (wt - ) (a) Find the resultant amplitude (b) Find the initial phase angle of the resultant...
-
1. Find a market news event. Scan the news for an article from within the last week about a good or service that interests you. Read the article and determine which is affected: supply or demand. 2....
-
A stock sells for $60 per share, the annual standard deviation of returns on the stock is estimated to be 45 percent, and the continuously compounded risk-free rate is 3 percent. A. If the stock did...
-
In 1 9 9 0 , Roger Hickey of California attained a speed of 8 9 km / h while standing on a skateboard. Suppose Hickey is riding horizontally at his stand - up speed when he catches up to another...
-
Suppose you are made a proposal to acquire an investment that will provide cash flows of $2,250 per year for 15 years. The cost of this investment is $15,750. If you have an alternative investment...
-
In a thermos, 0 . 2 4 0 kg of hot water at 3 3 deg C is stored, which needs to be cooled. 2 cubes of ice at 0 deg C of mass 0 . 0 2 5 kg each are added in the water and the thermos is closed. a )...
-
Outsourcing and offshoring initiatives can help an organization fine-tune its business model to become more resilient and profitable. At the same time, these initiatives present challenges. In...
-
Q1) What is the a3 Value Q2) What is the a7 Value Q3) What is the a4 Value Q4) What is the b3 Value Q5) What is the b2 Value Q6) What is the sign of 2nd constraint? A pastry chef at a bakery wants to...
-
A ___________ is the range of authoritative requests to which a subordinate is willing to respond without subjecting the directives to critical evaluation or judgment. (a) A zone of indifference (b)...
-
Define organizational politics and give an example of how it operates in both functional and dysfunctional ways.
-
Identify and explain at least three guidelines for the acquisition of (a) position power and (b) personal power by managers.
Study smarter with the SolutionInn App