Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity

Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Fixed Cost per Month $ 1,300 $ 4,900 $ 8,400 $ 2,000 $ 1,700 Cost per Car Washed $ 0.40 $ 0.08 $ 0.25 $ 0.30 $ 0.05 For example, electricity costs should be $1,300 per month plus $0.08 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.30 per car washed. The company actually washed 8,300 cars in August.
image text in transcribed
image text in transcribed
Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: For example, electricity costs should be $1,300 per month plus $0.08 per car washed. The company expects to wash 8,200 cars August and to collect an average of $6.30 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 favorab 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

Audit Security How To Plan Implement And Audit Netsuite Security

Authors: Zenobia Plautz

1st Edition

B0B5KQKXSY, 979-8840043851

More Books

Students also viewed these Accounting questions