Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following tableprovides data concerning the company's costs:Cleaning suppliesElectricityMaintenanceRentWages and salariesDepreciationAdministrative expensesFor example, electricity costs are $1,400 per month plus $0.06 per car washed. The company actually washed 8,200 cars in Augustand collected an average of $6.60 per car washed.Lavage RapideFlexible BudgetFor the Month Ended August 31RevenueExpenses:Required:Prepare the company's flexible budget for August.Cleaning suppliesElectricityMaintenanceFixed Costper Month$ 1,400Wages and salariesDepreciationRentCost perCar Washed$ 0.60$ 0.06$ 0.25$ 0.20$ 4,700$ 8,500$ 1,900$ 1,300$ 0.05< rev4 of 5 ⠀MacBook ProNext >с DepreciaRentAdministrative expensesFor example, electricity costs are $1,400 per month plus $0.06 per car washed. The company actually washed 8,200 carsand collected an average of $6.60 per car washed.Required:Prepare the company's flexible budget for August.Lavage RapideFlexible BudgetFor the Month Ended August 31RevenueExpenses:Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationRent$ 1,900$ 1,300Administrative expensesTotal expenseNet operating income$00$ 0.05IU

A flexible budget is a budgeting approach that adjusts or flexes according to changes in activity…

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses For example, electricity costs are $1,400 per month plus $0.06 per car washed. The company actually washed 8,200 cars in August and collected an average of $6.60 per car washed. Lavage Rapide Flexible Budget For the Month Ended August 31 Required: Prepare the company's flexible budget for August. Revenue Expenses: Fixed Cost per Month $ 1,400 $ 4,700 $ 8,500 $ 1,900 $ 1,300 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Cost per Car Washed $ 0.60 $ 0.06 $ 0.25 $ 0.20 Automal $ 0.05

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses For example, electricity costs are $1,400 per month plus $0.06 per car washed. The company actually washed 8,200 cars in August and collected an average of $6.60 per car washed. Lavage Rapide Flexible Budget For the Month Ended August 31 Required: Prepare the company's flexible budget for August. Revenue Expenses: Fixed Cost per Month $ 1,400 $ 4,700 $ 8,500 $ 1,900 $ 1,300 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Cost per Car Washed $ 0.60 $ 0.06 $ 0.25 $ 0.20 Automal $ 0.05

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

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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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 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.)
Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur. Classify these costs as fixed or variable costs and as product or period costs. Lumber used to construct decks ($12.00 per square foot) Carpenter labor used to construct decks ($10 per hour) Construction supervisor salary ($45,000 per year) Depreciation on tools and equipment ($6,000 per year) Selling and administrative expenses ($35,000 per year) Rent on corporate office space ($34,000 per year) Nails, glue, and other materials required to construct deck (varies per job)
Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Selling and administrative expenses ($45,000 per year) Rent on corporate office ($44,000 per year) Nails, glue, and other materials required to produce desks (varies per desk) Utilities expenses for production facility Sales staff commission (5% of gross sales)
Arctic Air Inc. manufactures cooling units for commercial buildings. The price and cost of goods sold for each unit are as follows: Category Per Unit Dollar Amount Price $60,000 Cost of goods sold Gross profit 28,000 32,000 In addition, the company incurs selling and administrative expenses of $226,250. The company wishes to assign these costs to its three major customers, Gough Industries, Breen Inc., and The Martin Group. These expenses are related to three major nonmanufacturing activities: customer service, project bidding, and engineering support. The engineering support is in the form of engineering changes that are placed by the customer to change the design of a product. The budgeted activity costs and activity bases associated with these activities are: Budgeted Activity Cost Activity Base $51,500 Number of service requests Activity Customer service Project bidding Engineering support 64,000 Number of bids 110,500 Number of customer design changes Total costs 226,000…
Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. A. Wood used to produce desks ($125.00 per desk) B. Production labor used to produce desks ($15 per hour) C. Production supervisor salary ($45,000 per year) D. Depreciation on factory equipment ($60,000 per year) E. Selling and administrative expenses ($45,000 per year) F. Rent on corporate office ($44,000 per year) G. Nails, glue, and other materials required to produce desks (varies per desk) H. Utilities expenses for production facility I. Sales staff commission (5% of gross sales)
King's Appliance Shop operates retail stores that sell appliances. The cost objects are the individual sales of a given type of appliance and sales support. In July, the following costs were recorded for refrigerators: Professional sales staff commissions Amortization on office space Selling supplies Office staff expenses Customer relations Training expenses Utilities $84,000 4,000 6,400 24,800 8,600 6,000 1,400 Required: a. Which of the costs will be subject to direct cost tracing? b. What is the total cost for refrigerators? c. What is the total cost of the Sales Support for refrigerators?
Easton Company makes and sells scooters. Easton incurred the following costs in its most recent fiscal year: Cost Items Appearing on the Income Statement Materials cost ($10 per unit) Company president's salary Depreciation on manufacturing equipment Salaries of administrative personnel Labor cost ($4 per unit) Advertising costs (150,000 per year) Shipping and handling ($500 per year) Research and development costs Real estate taxes on factory Inspection costs Easton can currently purchase the scooters it makes from Weston Company. If the company purchases the scooters, Easton would still continue to use its own logo, sales staff, and advertising programs. If Easton outsources the scooters to Weston, which of the following costs would be relevant to the outsourcing decision? Multiple Choice X Materials cost Shipping and handling Inspection costs All of these answers are correct.
[The following information applies to the questions displayed below.] Listed here are the costs associated with the production of 1,000 drum sets manufactured by TrueBeat. Costs 1. Plastic for casing-$17,000 2. Wages of assembly workers-$82,000 3. Property taxes on factory-$5,000 4. Office accounting salaries-$35,000 5. Drum stands-$26,000 6. Rent cost of office for accountants-$10,000 7. Office management salaries-$125,000 8. Annual fee for factory maintenance-$10,000 9. Sales commissions-$15,000 10. Factory machinery depreciation, straight-line-$40,000
ABD Co. manufactures textiles. ABD's manufacturing costs last year included the following salaries and wages: Loom (a machine for making mathfrak ric) operators = PhP6,000,000 Factory foremen = PhP2,250,000 Machinery repairmen = PhP1,500,000 What is the amount of direct labor included in the list above? Show the solution please
Listed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $500 each. Costs 1. Plastic for casing-$17,000 2. Wages of assembly workers-$82,000 3. Property taxes on factory-$5,000 4. Accounting staff salaries-$35,000 5. Drum stands (1,000 stands purchased)-$26,000 6. Rent cost of equipment for sales staff-$10,000 7. Upper management salaries-$125,000 8. Annual flat fee for factory maintenance service-$10,000 9. Sales commissions-$15 per unit 10. Machinery depreciation, straight-line-$40,000
Ethan Manufacturing Incorporated produces floor mats for automobiles. The owner, Joseph Ethan, has asked you to assist in estimating maintenance costs. Together, you and Joseph determine that the single best cost driver for maintenance costs is machine hours. These data are from the previous fiscal year for maintenance costs and machine hours: Month Maintenance Costs Machine Hours 1 $ 2,780 1,870 2 2,940 1,950 3 3,090 2,030 4 3,200 2,050 5 3,280 2,080 6 3,250 2,060 7 3,190 2,040 8 3,030 2,020 9 2,800 1,880 10 2,400 1,280 11 2,410 1,480 12 2,630 1,770 Required: 1. What is the cost equation for maintenance costs using the high-low method? 2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1.