Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month Cost per Car Washed $ 0.70 $ 1,200 $ 0.08 $ 0.20 $ 4,500 $ 0.30 $ 8,400 $ 2,000 $ 1,600 $ 0.01 For example, electricity costs should be $1,200 per month plus $0.08 per car washed. The company expects to wash 8,100 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 8,200 Revenue $57,180 Expenses: Cleaning supplies 6,170 Electricity 1,818 Maintenance 1,860 Wages and salaries 7,290 Depreciation

Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month Cost per Car Washed $ 0.70 $ 1,200 $ 0.08 $ 0.20 $ 4,500 $ 0.30 $ 8,400 $ 2,000 $ 1,600 $ 0.01 For example, electricity costs should be $1,200 per month plus $0.08 per car washed. The company expects to wash 8,100 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 8,200 Revenue $57,180 Expenses: Cleaning supplies 6,170 Electricity 1,818 Maintenance 1,860 Wages and salaries 7,290 Depreciation

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...

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Fixed Cost Cost per Car per Month Washed $ 0.70 $ 0.07 $ 0.15 $ 0.20 Cleaning supplies Electricity $ 1,100 Maintenance $ 4,800 $ 8,300 $ 1,900 $ 1,400 Wages and salaries Depreciation Rent Administrative expenses $ 0.05 For example, electricity costs are $1,100 per month plus $0.07 per car washed. The company actually washed 8,600 cars in August and collected an average of $6.40 per car washed. Required: Prepare the company's flexible budget for August. Lavage Rapide Flexible Budget For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses
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