Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lavage Rapides a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's

image text in transcribed

Lavage Rapides 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: Tixed cost per Month Cea per Car Washed 50.50 50.03 50.15 50.30 Cleaning supplies Electricity Maintenance inges and anleria Depreciation 51,0DD 54, 5DD 58.DDD 51,900 51,600 Adistrative expenses 50.02 For example, clectricity costs are $1,000 per month plus $0.07 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.60 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended Nagast 3! Actas cas vabad 556, BD 1,553 Rev Expensa: Cleaning supplies Electricity Maintenance Wages and salarios Depreciation Rent Administrative expense Totale Net Operating incom B.DDD 2,100 26.902 529,970 Required: Calculate the company's revenue and spending 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 Revenue and Spending Variances For the Month Ended August 31 Revenue Expenses Clearing supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total exco Net operating income

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Fundamental Accounting Principles Volume I

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

16th Canadian edition

978-1260305821

Students also viewed these Accounting questions