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: Fixed Cost

Lavage Rapide 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 $ 0.60
Electricity $ 1,100 $ 0.10
Maintenance $ 0.15
Wages and salaries $ 4,500 $ 0.30
Depreciation $ 8,500
Rent $ 1,900
Administrative expenses $ 1,500 $ 0.04
For example, electricity costs should be $1,100 per month plus $0.10 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.90 per car washed. The company actually washed 8,600 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_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

Accounting Information Systems

Authors: Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill

11th edition

1337552127, 978-1305971424, 1305971426, 978-0357688694, 978-1337673174, 133767317X, 978-1337552127

More Books

Students also viewed these Accounting questions

Question

What is a conflict of interest in a business setting?

Answered: 1 week ago