Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lovage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the

image text in transcribed

Lovage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Fixed Cost Cost per per Month Car Washed Cleaning supplies $ 0.70 Electricity $ 1,320 $ 0.07 Maintenance $ 0.25 Wages and salaries $ 5,888 $ 8.30 Depreciation $ 8,480 Rent $ 2, 128 Administrative expenses $ 1,420 $ 0.25 For exemple, electricity costs should be $1,300 per month plus $0.07 per car washed. The company expects to wash 8.400 cars in August and to collect an average of $6.70 per car washed. The company actually weshed 8,500 cars in August. Required: Calculate the company's activity variances for August. (Indicate the effect of each varlance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (1.e., zero varlance). Input all amounts as positive values.) Lavage Rapide Activity Variances For the Month Ended August 31 Reven Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating 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

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

Auditing Transformation Regulation Digitalisation And Sustainability

Authors: Jan Marton, Fredrik Nilsson, Peter Öhman

1st Edition

103253303X, 978-1032533032

More Books

Students also viewed these Accounting questions

Question

6. How do histories influence the process of identity formation?

Answered: 1 week ago