Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimatesconcerning the company's costs:Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentAdministrative expenses.$ 0.03For example, electricity costs should be $1,000 per month plus $0.07 per car washed. The company expects to wash 8.300 cars inAugust and to collect an average of $6.20 per car washed.The actual operating results for August are as follows:Lavage RapideIncome StatementActual cars washedRevenueExpenses:For the Month Ended August 31Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentFixed Cost Cost perper Month Car Washed$ 0.70$1,000$ 0.07$0.10$.0.30$ 4,300$ 8,200$2,100$ 1,700Administrative expensesTotal expensesHet operating income8,400$53,5606,3101,5511,0707,1508,2002.3001,84928,430$ 25,110 Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimatesconcerning the company's costs:Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentAdministrative expenses.$ 0.03For example, electricity costs should be $1,000 per month plus $0.07 per car washed. The company expects to wash 8.300 cars inAugust and to collect an average of $6.20 per car washed.The actual operating results for August are as follows:Lavage RapideIncome StatementActual cars washedRevenueExpenses:For the Month Ended August 31Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentFixed Cost Cost perper Month Car Washed$ 0.70$1,000$ 0.07$0.10$.0.30$ 4,300$ 8,200$2,100$ 1,700Administrative expensesTotal expensesHet operating income8,400$53,5606,3101,5511,0707,1508,2002.3001,84928,430$ 25,110

The flexible budget enables the managers to isolate the various causes of the differences between…

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 $ 0.03 For example, electricity costs should be $1,000 per month plus $0.07 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.20 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement Actual cars washed Revenue Expenses: For the Month Ended August 31 Cleaning supplies Electricity Maintenance Rent Wages and salaries Depreciation Fixed Cost Cost per per Month Car Washed $ 0.70 $ 0.07 $0.105 $.0.30 $1,000 $ 4,300 $ 8,200 $2,100 $ 1,700 Administrative expenses Total expenses Het operating income 8,400 $53,560 6,310 1,551 1,070 7,150 8,200 2,300 1,849 28,410 $25,130

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 $ 0.03 For example, electricity costs should be $1,000 per month plus $0.07 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.20 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement Actual cars washed Revenue Expenses: For the Month Ended August 31 Cleaning supplies Electricity Maintenance Rent Wages and salaries Depreciation Fixed Cost Cost per per Month Car Washed $ 0.70 $ 0.07 $0.105 $.0.30 $1,000 $ 4,300 $ 8,200 $2,100 $ 1,700 Administrative expenses Total expenses Het operating income 8,400 $53,560 6,310 1,551 1,070 7,150 8,200 2,300 1,849 28,410 $25,130

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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…
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 Rent Administrative expenses $ 0.01 For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.60 per car washed. The company actually washed 8.300 cars in August. Fixed Cost Cost per per Month Car Washed $0.40 $ 0.08 $1,100. $ 0.25 $ 4,400 $ 0.40 $ 8,400 Revenue Expenses Required: Calculate the company's activity variances 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. $2,000 $1,600 Cleaning supplies Electricity Lavage Rapide Activity Variances For the Month Ended August 31
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 $ 0.04 For example, electricity costs should be $1,500 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.80 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 expenses Net operating income Fixed Cost per Cost per Month Car Washed $ 0.60 $ 1,500 $ 0.08 $0.10 $ 0.30 $ 4,400 $ 8,000 $ 2,100 $ 1,500 Revenue 8,100 $ 56,500 5,300 2,110 1,040 7,160 8,000 2,300 1,720 27,630 $ 28,870 Required: Calculate the company's revenue and spending variances…
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 Rent Wages and salaries. Depreciation Administrative expenses For example, electricity costs should be $1,300 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.70 per car washed. The company actually washed 8,100 cars in August. Revenue Expenses: Fixed Cost per Cost per Month Car Washed $ 1,300 $4,400 $ 8,300 $2,000 $ 1,700 Lavage Rapide Activity Variances For the Month Ended August 31 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent $ 0.70 $ 0.08 Required: Calculate the company's activity variances 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.…
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: Cleaning supplies Electricity Maintenance For example, electricity costs should be $1,300 per month plus $0.10 per car washed. The company expects to wash 8,300 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 Wages and salaries Depreciation Rent Fixed Cost Cost per per Month Car Washed $ 0.60 $ 0.10 $ 0.25 $ 0.30 Administrative expenses Total expenses Net operating income $ 1,300 $ 4,300 $ 8,300 $ 2,200 $ 1,800 8,400 $ 59,370 5,480 2,100 $ 0.04 2,315 7,150 8,300 2,400 2,032 29,777 $ 29,593 Required: Prepare a flexible budget performance report for August. Note:…
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 Mages and salaries Depreciation Rent Administrative expenses For example, electricity costs should be $1,200 per month plus $0.10 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.50 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 Fixed Cost per Month $1,200 $ 4,400 $8,100 $ 2,100 $1,800 Rent Administrative expenses Total expense Bet operating income Cost per Car Washed $0.80 $0.10 $ 0.20 $0.30 8,400 $56,050 7,140 2,000 1,900 7,250 0,100 2,300 2,032 30,722 $ 25,328 $ 0.04 Required: Calculate the company's revenue and spending…
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 Revenue Expenses: Fixed Cost per Month $ 1,200 $ 4,100 $ 8,100 $ 2,000 $ 1,400 $ 0.04 For example, electricity costs should be $1,200 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.20 per car washed. The company actually washed 8,500 cars in August. Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Required: Calculate the company's activity variances 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. Lavage Rapide Activity Variances For the Month Ended August 31 Administrative expenses Total…
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 $ 0.10 For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. The company actually washed 8,800 cars in August. Revenue Expenses: Required: Calculate the company's 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 variance). Input all amounts as positive values.) Cleaning supplies Electricity Maintenance Fixed Cost Cost per per Month Car Washed. $ 1,200 $ 5,000 $ 6,000 $ 8,000 $ 4,000 Lavage Rapide Activity Variances For the Month Ended August 31 Wages and salaries…
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 Rent Administrative expenses For Actual cars washed Revenue 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 Expenses: 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 $ 1,400 $ 0.08 $ 0.25 $ 4,400 $ 0.30 $ 8,000 $ 2,200 $ 1,700 Cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance 8,400 $ 51,900 Required: Prepare a flexible 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 Wages and salaries. Depreciation Administrative expenses Rent Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance For example, electricity costs should be $1,200 per month plus $0.06 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.40 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Wages and salaries Depreciation Rent Fixed Cost per Month $ 1,200 $ 4,900 $ 8,100 $ 1,900 $ 1,600 Administrative expenses Total expense Net operating income Cost per Car Washed $ 0.60 $ 0.06 $ 0.25 $0.30 8,500 $ 55,860 5,540 1,674 2,340 7,780 8,100 $ 0.03 2,100 1,752 29, 286 $ 26,574 Required: Prepare a flexible budget performance…
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: For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. The company actually washed 8,800 cars in August. 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.)
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 $ 0.03 For example, electricity costs should be $1,000 per month plus $0.08 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.50 per car washed. The company actually washed 8,400 cars in August. Rent Revenue Expenses: Required: Calculate the company's 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.) Fixed Cost Cost per per Month Car Washed $ 0.50 $ 1,000 $ 0.08 $ 0.10 $ 0.30 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Lavage Rapide Activity Variances For the Month Ended…