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 data 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 data concerning the company's costs: Fixed Cast per Month Cost per Car Washed 50.30 50.00 $0.30 $0.20 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,300 $4,500 $8,300 $2,000 $1,600 $0.05 For example, electricity costs are $1.300 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.40 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 3,500 $ 55.860 Revenue Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation 7,220 1,942 2.750 6,640 8,300 2,200 1,920 30,982 5.24,878 Administrative expenses Total expense Net operating income Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August (Indicate the effect oferch variance by selecting "F" for favorable, "U" for unfovorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Flexible Results Budget 8.500 Planning Budget Cars washed $ 55 800 7.220 1942 Revenue Expenses Cleaning Supplies Electricity Maintenance Wages and sales Depreciation Rent Adminstrative expenses 2.780 6,640 300 2200 1,920 30,982 24.878 Netopeng 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_2

Step: 3

blur-text-image_3

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

Performance Auditing A Measurement Approach

Authors: Ronell B. Raaum, Stephen L. Morgan

4th Edition

0894134647, 978-0894134647

More Books

Students also viewed these Accounting questions

Question

Identify how culture affects appropriate leadership behavior

Answered: 1 week ago