FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 data concerning the company's costs:
Fixed Cost Cost per Car
per Month
cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
Washed
$ 0.80
$ 1,200
$ 0.15
$
0.20
$ 5,000
$ 0.30
$ 6,000
$ 8,000
$ 4,000
$ 0.10
For example, electricity costs are $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.
Required:
Prepare the company's planning budget for August.
Lavage Rapide
Planning Budget
For the Month Ended August 31
Budgeted cars washed
Revenue
Expenses:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
Total expense
Net operating income
0
S
0
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Transcribed Image Text: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: Fixed Cost Cost per Car per Month cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Washed $ 0.80 $ 1,200 $ 0.15 $ 0.20 $ 5,000 $ 0.30 $ 6,000 $ 8,000 $ 4,000 $ 0.10 For example, electricity costs are $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. Required: Prepare the company's planning budget for August. Lavage Rapide Planning Budget For the Month Ended August 31 Budgeted cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 0 S 0
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