Exercise 9-12 (Algo) Revenue and Spending Variances [LO9-3] Lavage 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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent $ 0.02 For example, electricity costs should be $1,100 per month plus $0.07 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.90 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent For the Month Ended August 31 Administrative expenses Total expense Net operating income Revenue Expenses: Rent Fixed Cost Cost per per Month Car Washed $ 0.50 $ 1,180 $ 0.07 $ 0.15 $ 5,000 $ 0.20 $ 8,200 $ 2,200 $ 1,800 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Required: Calculate the company's revenue and spending variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values. Administrative expenses Total expense Not opor 8,200 $ 57,990 Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 innomo 4,550 1,637 1,455 6,988 8,290 2,480 1,862 27,084 $ 38,996
Exercise 9-12 (Algo) Revenue and Spending Variances [LO9-3] Lavage 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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent $ 0.02 For example, electricity costs should be $1,100 per month plus $0.07 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.90 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent For the Month Ended August 31 Administrative expenses Total expense Net operating income Revenue Expenses: Rent Fixed Cost Cost per per Month Car Washed $ 0.50 $ 1,180 $ 0.07 $ 0.15 $ 5,000 $ 0.20 $ 8,200 $ 2,200 $ 1,800 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Required: Calculate the company's revenue and spending variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values. Administrative expenses Total expense Not opor 8,200 $ 57,990 Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 innomo 4,550 1,637 1,455 6,988 8,290 2,480 1,862 27,084 $ 38,996
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![Exercise 9-12 (Algo) Revenue and Spending Varlances [LO9-3]
Lavage 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:
Cleaning supplies
Electricity
Maintenance
Rent
Wages and salaries
Depreciation
Administrative expenses
For example, electricity costs should be $1,100 per month plus $0.07 per car washed. The company expects to wash 8,100 cars in
August and to collect an average of $6.90 per car washed.
The actual operating results for August are as follows:
Lavage Rapide
Income Statement
For the Month Ended August 31
Actual cars washed
Revenue
Expenses:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
Total expense
Net operating income.
Revenue
Expenses:
Fixed Cost Cost per
per Month
Car Washed
$ 0.50
$ 1,100
$ 0.07
$ 5,000
$ 8,200
$ 2,200
$ 1,800
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
8,200
$ 57,990
Required:
Calculate the company's revenue and spending variances for August.
Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero
varlance). Input all amounts as positive values.
Administrative expenses
Total expense
Net operating income
4,550
1,637
1,455
6,988
8,200
2,400
1,862
27,084
$ 30,906
Lavage Rapide
Revenue and Spending Variances
For the Month Ended August 31
$ 0.15
$ 0.20
$ 0.02](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F032b8689-1487-47d0-960a-ec81d5d77a8e%2Ff0500345-5aca-4cf4-b4c5-6c3606ffb7ff%2Fkzkivbi_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 9-12 (Algo) Revenue and Spending Varlances [LO9-3]
Lavage 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:
Cleaning supplies
Electricity
Maintenance
Rent
Wages and salaries
Depreciation
Administrative expenses
For example, electricity costs should be $1,100 per month plus $0.07 per car washed. The company expects to wash 8,100 cars in
August and to collect an average of $6.90 per car washed.
The actual operating results for August are as follows:
Lavage Rapide
Income Statement
For the Month Ended August 31
Actual cars washed
Revenue
Expenses:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
Total expense
Net operating income.
Revenue
Expenses:
Fixed Cost Cost per
per Month
Car Washed
$ 0.50
$ 1,100
$ 0.07
$ 5,000
$ 8,200
$ 2,200
$ 1,800
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
8,200
$ 57,990
Required:
Calculate the company's revenue and spending variances for August.
Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero
varlance). Input all amounts as positive values.
Administrative expenses
Total expense
Net operating income
4,550
1,637
1,455
6,988
8,200
2,400
1,862
27,084
$ 30,906
Lavage Rapide
Revenue and Spending Variances
For the Month Ended August 31
$ 0.15
$ 0.20
$ 0.02
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