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

image

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 per Cost per Month Car Washed Cleaning supplies $ 0.50 Electricity $ 1,100 $ 0.05 Maintenance $ 0.10 Wages and salaries $ 4,300 $ 0.30 Depreciation $ 8,000 Rent $ 2,000 Administrative expenses $ 1,500 $ 0.02 For example, electricity costs should be $1,100 per month plus $0.05 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.20 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

Answer To calculate the activity variances for Lavage Rapide for August well first compute the actua... 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

Document Format ( 2 attachments)

PDF file Icon
663ded59b12c4_960986.pdf

180 KBs PDF File

Word file Icon
663ded59b12c4_960986.docx

120 KBs Word File

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

Managerial Accounting

Authors: Ray H Garrison, Alan Webb, Theresa Libby

11th Canadian Edition

1259275817, 978-1259275814

More Books

Students also viewed these Accounting questions

Question

7. Prove Theorem 5.2.5.

Answered: 1 week ago

Question

5. In Prob. 1, find the dimension of S S.

Answered: 1 week ago