M Question 6 - Ch 9 Ex 35 marks - x + V X C A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253%2525%252Fnewconnect.mheducation.com%252F#/activity/question-group/kEZASsBkEP... LE Ch 9 Ex 35 marks i Saved Help Save & Exit Submit Check my work 6 Exercise 9-9 Flexible Budget Performance Report [LO3, LO4] Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table 10 provides data concerning the company's expected costs: points Fixed Cost Cost per per Month Car Washed eBook Cleaning supplies $0. 70 Electricity $1, 800 0. 10 Print Maintenance 0. 30 Wages and salaries 5, 100 0. 40 References Depreciation 8, 700 Rent 2, 500 Administrative expenses 2, 240 0. 09 For example, electricity costs are $1,800 per month plus $0.10 per car washed. The company expects to wash 8,400 cars in October and to collect an average of $6.30 per car washed. Auto Lavage's actual level of activity was 8,500 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 8, 500 Sales $56, 300 Variable expenses : Cleaning supplies 6,475 Electricity 910 Maintenance 2, 075 Wages and salaries 3, 802 Administrative 856 Fixed expenses: Flectricity 1 .890 Mc Graw Hill Type here to search O X 7 W 6.C Mostly clear ~ 9 0 / 4) ENG 8:17 PM 10/29/2023M Question 6 - Ch 9 Ex 35 marks - x + V X C A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/kEZASsBkEP... Ch 9 Ex 35 marks i Saved Help Save & Exit Submit Check my work 6 Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 8,500 Sales $56, 300 10 Variable expenses : points Cleaning supplies 6,475 Electricity 910 Maintenance 2, 075 eBook Wages and salaries 3,802 Administrative 856 Print Fixed expenses: Electricity 1, 890 References Wages and salaries 5,100 Depreciation 8,700 Rent 2, 500 Administrative 2 , 145 Total expense 34, 453 Net operating income $21, 847 Required: 1. Prepare a flexible budget performance report for October. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) AUTO LAVAGE INC. Flexible Budget Performance Report For the Month Ended October 31 Cost Formula Actual Flexible Flexible Budget (per car) Budget Variance Sales $ 6.20 Variable Expenses: Mc Graw Hill Type here to search X 7 W 6.C Mostly clear ~ 9 0 (@ ) ENG 8:17 PM 10/29/2023M Question 6 - Ch 9 Ex 35 marks - x + V X C A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/kEZASsBkEP... Ch 9 Ex 35 marks i Saved Help Save & Exit Submit Check my work 6 Required: 1. Prepare a flexible budget performance report for October. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) 10 AUTO LAVAGE INC. points Flexible Budget Performance Report For the Month Ended October 31 eBook Cost Formula Actual Flexible Flexible Budget (per car) Budget Variance Print Sales $ 6.20 References Variable Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Administrative Total variable expenses 0.00 0 0 Contribution margin 6.2 o Fixed expenses Electricity Wages and salaries Depreciation Rent Administrative Mc Graw Hill Type here to search 2 x 7 W 6.C Mostly clear ~ 9 0 / 4) ENG 8:17 PM 10/29/2023M Question 6 - Ch 9 Ex 35 marks - x + V X C A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253%2525%252Fnewconnect.mheducation.com%252F#/activity/question-group/kEZASsBkEP... LE Ch 9 Ex 35 marks i Saved Help Save & Exit Submit Check my work 6 Electricity Wages and salaries Depreciation Rent 10 Administrative points eBook Total fixed expenses 0 Print Operating income $ o $ References 2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 8,400 cars. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) AUTO LAVAGE INC Comprehensive Performance Report For the Month Ended October 31 Actual Flexible Budget Flexible Static Variance Budget Sales Volume Variance Budget Number of cars 8,500 8,500 3,400 Sales Variable Expenses: Mc Graw Hill 8:17 PM Type here to search 2 O x 7 W 6.C Mostly clear ~ 9 0 / 0 4) ENG 10/29/2023M Question 6 - Ch 9 Ex 35 marks - x + V X C A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/kEZASsBkEP... Ch 9 Ex 35 marks i Saved Help Save & Exit Submit Check my work 6 2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 8,400 cars. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) 10 AUTO LAVAGE INC points Comprehensive Performance Report For the Month Ended October 31 eBook Actual Flexible Budget Flexible Static Print Variance Budget Sales Volume Variance Budget References Number of cars 8,500 8,500 3,400 Sales Variable Expenses Cleaning supplies Electricity Maintenance Wages and salaries Administrative Total variable expenses o Contribution margin Fixed expenses Electricity Wages and salaries Depreciation Mc Graw Hill Type here to search O X 7 W 6.C Mostly clear ~ 9 / 4) ENG 8:17 PM 10/29/2023M Question 6 - Ch 9 Ex 35 marks - x + V X C A ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252F#/activity/question-group/kEZASsBkEP... Ch 9 Ex 35 marks i Saved Help Save & Exit Submit Check my work 6 Actual Flexible Budget Flexible Static Variance Budget Sales Volume Variance Budget Number of cars 8,500 8,500 8,400 10 Sales points Variable Expenses: Cleaning supplies eBook Electricity Maintenance Print Wages and salaries References Administrative Total variable expenses of 0 Contribution margin 0 Fixed expenses Electricity Wages and salaries Depreciation Ren Administrative Total fixed expenses Operating income S 0 $ S 0 Mc Graw Hill 8:17 PM Type here to search O x 7 W 6.C Mostly clear ~ 9 0 /. @ 4) ENG 10/29/2023