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Lavage Rapide 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 Actual cars washed Revenue Expenses: For example, electricity costs should be $1,200 per month plus $0.06 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.70 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Rent Administrative expenses Total expenses Net operating income Cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost per Cost per Month Car Washed $ 0.40 $ 1,200 $ 0.06 $ 0.25 $ 4,400 $ 0.40 $ 8,300 $ 1,900 $ 1,500 Administrative expenses Total expenses Net operating income 8,200 $ 56,370 Actual Results $ Required: Prepare a flexible budget performance report for August. Note: 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. 8,200 $ 56,370 3,740 1,656 1,724 27,785 $ 28,585 2,265 8,000 3,740 1,656 2,265 8,000 8,300 8,300 2,100 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 1,724 27,785 28,585 $ 0.04 Flexible Budget Planning Budget

Lavage Rapide 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 Actual cars washed Revenue Expenses: For example, electricity costs should be $1,200 per month plus $0.06 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.70 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Rent Administrative expenses Total expenses Net operating income Cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost per Cost per Month Car Washed $ 0.40 $ 1,200 $ 0.06 $ 0.25 $ 4,400 $ 0.40 $ 8,300 $ 1,900 $ 1,500 Administrative expenses Total expenses Net operating income 8,200 $ 56,370 Actual Results $ Required: Prepare a flexible budget performance report for August. Note: 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. 8,200 $ 56,370 3,740 1,656 1,724 27,785 $ 28,585 2,265 8,000 3,740 1,656 2,265 8,000 8,300 8,300 2,100 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 1,724 27,785 28,585 $ 0.04 Flexible Budget Planning Budget

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 4EB: Roper Furniture manufactures office furniture and tracks cost data across their process. The...
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Lavage Rapide 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 Actual cars washed Revenue Expenses: For example, electricity costs should be $1,200 per month plus $0.06 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.70 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expenses Net operating income Cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost per Cost per Month Car Washed $0.40 $ 1,200 $ 0.06 $ 0.25 $ 0.40 $4,400 $ 8,300 $1,900 $1,500 Administrative expenses Total expenses Net operating income Required: Prepare a flexible budget performance report for August. Note: 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. 8,200 $ 56,370 Actual Results $ 8,000 8,300 2,100 1,724 27,785 $ 28,585 3,740 1,656 2,265 8,200 $ 56,370 $ 0.04 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 3,740 1,656 2,265 8,000 8,300 2,100 1,724 27,785 28,585 Flexible Budget Planning Budget
Transcribed Image Text:Lavage Rapide 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 Actual cars washed Revenue Expenses: For example, electricity costs should be $1,200 per month plus $0.06 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.70 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expenses Net operating income Cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost per Cost per Month Car Washed $0.40 $ 1,200 $ 0.06 $ 0.25 $ 0.40 $4,400 $ 8,300 $1,900 $1,500 Administrative expenses Total expenses Net operating income Required: Prepare a flexible budget performance report for August. Note: 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. 8,200 $ 56,370 Actual Results $ 8,000 8,300 2,100 1,724 27,785 $ 28,585 3,740 1,656 2,265 8,200 $ 56,370 $ 0.04 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 3,740 1,656 2,265 8,000 8,300 2,100 1,724 27,785 28,585 Flexible Budget Planning Budget
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