Answered step by step
Verified Expert Solution
Question
1 Approved Answer
This is ONE question divided into two parts. Please do not answer my question partially. I need the whole answer. This a service I pay
This is ONE question divided into two parts. Please do not answer my question partially. I need the whole answer. This a service I pay for so please answer my questions. Please and thank you.
(14) Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the compny's costs: (13) Via Gelato is a popular neighborhood gelato shop. The company has provided the following cost formulas and actual results for the month of June: Fixed Cost Cost per per Month Car Washed Cleaning supplies $ 0.50 Electricity $ 1,100 $ 0.05 Maintenance $ 0.20 Wages and salaries $ 4.800 $ 0.30 Depreciation $ 8.300 Rent $ 2.200 Administrative expenses $ 1.400 $ 0.03 $ Fixed Variable Actual Element Element Total per Month per Liter for June Revenue $ 28.00 $ 171,540 Raw materials 6.25 $ 40.530 Wages $ 7,200 $ 3.00 $ 26,300 Utilities $ 3.230 $ 1.80 $ 15.000 Rent $ 4.200 $ 4.200 Insurance $ 2.950 $ 2.950 Miscellaneous $ 810 $ 1.95 $ 12.890 For example, electricity costs are $1.100 per month plus $0.05 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.20 per car washed. The company actually washed 8,100 cars in August. While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example, wages should be $7,200 plus $3.00 per liter of gelato sold and the actual wages for June were $26,300. Via Gelato expected to sell 6.200 liters in June, but actually sold 6.400 liters. Required: Calculate the company's activity 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.) Required: Calculate Via Gelato revenue and spending variances for June. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorableStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started