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 For Actual cars washed Revenue Expenses: Wages and salaries Depreciation Rent Administrative expenses For example, electricity costs should be $1,400 per month plus $0.08 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.00 per car washed. The actual operating results for August are as follows: Lavage Rapide Income statement the Month Ended August 31 cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Fixed Cost Cost per per Month Car Washed $ 0.60 $ 0.08 $ 0.25 $ 0.30 Cars washed Revenue Expenses: $ 1,400 $ 4,400 $ 8,000 $ 2,200 $ 1,700 Cleaning supplies Electricity Maintenance 8,400 $ 51,900 Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. (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.) Actual Results 2,315 7,250 8,000 2,400 2,015 29,494 $ 22,406 5,480 2,034 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 8,400 S 51,900 $ 0.05 5,480 2,034 2,315 Flexible Budget Planning Budget
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 For Actual cars washed Revenue Expenses: Wages and salaries Depreciation Rent Administrative expenses For example, electricity costs should be $1,400 per month plus $0.08 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.00 per car washed. The actual operating results for August are as follows: Lavage Rapide Income statement the Month Ended August 31 cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Fixed Cost Cost per per Month Car Washed $ 0.60 $ 0.08 $ 0.25 $ 0.30 Cars washed Revenue Expenses: $ 1,400 $ 4,400 $ 8,000 $ 2,200 $ 1,700 Cleaning supplies Electricity Maintenance 8,400 $ 51,900 Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. (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.) Actual Results 2,315 7,250 8,000 2,400 2,015 29,494 $ 22,406 5,480 2,034 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 8,400 S 51,900 $ 0.05 5,480 2,034 2,315 Flexible Budget Planning Budget
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 4EA: Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on...
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