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: Fixed Cost Cost per per Month Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $0.50 $ 1,200 $ 0.10 $ 0,25 $ 4,800 $0.40 $ 8,400 $2,100 $ 1,800 $ 0.02 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 $6.40 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Staterent For the Month Ended August 31 Actual cars washed 8,400 Revenue $55,220 Expenses: Cleaning supplies 4,650 Electricity 2,000 Maintenance 2,315 Wages and salaries 8,480

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: Fixed Cost Cost per per Month Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $0.50 $ 1,200 $ 0.10 $ 0,25 $ 4,800 $0.40 $ 8,400 $2,100 $ 1,800 $ 0.02 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 $6.40 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Staterent For the Month Ended August 31 Actual cars washed 8,400 Revenue $55,220 Expenses: Cleaning supplies 4,650 Electricity 2,000 Maintenance 2,315 Wages and salaries 8,480

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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A https://camdenccinstructure.com/courses/3788/assignmen * QuestionTO ces View Policies ions Current Attempt in Progress 5 Support The master budget of Waterway Industries shows that the planned activity level for next year is expected to be 50000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: al Indirect labor $820000 Machine supplies 280000 Indirect materials 310000 Depreciation on factory building 250000 Total manufacturing overhead $1660000 A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of $1942000. O $1992000. O $1742000. $1660000.
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