FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- Hanshabenarrow_forwardLavage 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 per Month Cost per Car Washed Cleaning supplies $ 0.50 Electricity $ 1,400 $ 0.06 Maintenance $ 0.30 Wages and salaries $ 4,300 $ 0.20 Depreciation $ 8,000 Rent $ 2,200 Administrative expenses $ 1,400 $ 0.02 For example, electricity costs should be $1,400 per month plus $0.06 per car washed. The company actually washed 8,300 cars in August and collected an average of $6.90 per car washed. Prepare the company’s flexible budget for August.arrow_forwardPlease help with workingarrow_forward
- 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 Fixed Cost Cost per per Month Car Washed $ 0.50 $ 1,300 $ 0.07 $ 0.15 $ 4,500 $ 0.20 $ 8,200 $ 1,800 $ 1,500 $ 0.02 For example, electricity costs should be $1,300 per month plus $0.07 per car washed. The company expects to wash 8,500 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 Rent Administrative expenses Total expense Net operating income Required: 8,600 $ 57,350 4,750 1,865 1,515 6,560 8,200 2,000 1,570 26,460 $ 30,890 Prepare a flexible budget performance…arrow_forwardLavage 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 per Month Cost per Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation $ 0. 70 $ 0.08 $ 0.20 $ 0.30 $ 1,400 $ 4,300 $ 8,300 $ 1,800 $ 1,500 Rent Administrative expenses $ 0.02 For example, electricity costs should be $1,400 per month plus $0.08 per car washed. The company actually washed 8,400 cars in August and collected an average of $6.10 per car washed. Required: Prepare the company's flexible budget for August. Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating incomearrow_forwardam. 112.arrow_forward
- 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 per Month Cost per Car Washed Cleaning supplies $ 0.70 Electricity $ 1,100 $ 0.08 Maintenance $ 0.25 Wages and salaries $ 4,200 $ 0.30 Depreciation $ 8,400 Rent $ 2,100 Administrative expenses $ 1,500 $ 0.01 For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.90 per car washed. The company actually washed 8,600 cars in August. 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.arrow_forwardThis is the second time posting the same question. please read carfully and solve in correctly! thank you.arrow_forwardLavage Rapide is a Canadlan 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 Washed $ 0.40 $ 0.10 $ 0.10 $ 0. 20 per Month Cleaning supplies Electricity Maintenance $ 1,e00 $ 4,100 $ 8,100 $ 2, 200 $ 1,300 Wages and salaries Depreciation Rent Administrative expenses $ 0.04 For example, electricity costs are $1,000 per month plus $0.10 per car washed. The company expects to wash 8,500 cars In August and to collect an average of $6.30 per car washed. Requlred: Prepare the company's planning budget for August. Lavage Rapide Planning Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating incomearrow_forward
- 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 Fixed Cost Cost per per Month Car Washed $ 0.70 $ 1,200 $ 0.07 $ 0.15 $ 4,900 $ 0.40 $ 8,000 $ 2,000 $ 1,400 $ 0.02 For example, electricity costs should be $1,200 per month plus $0.07 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.10 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 expense Net operating income Required: 8,300 $ 52,120 6,240 1,744 1,470 8,540 8,000 2,200 1,464 29,658 $ 22,462 Calculate the company's revenue and…arrow_forwardLavage 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 Fixed Cost Cost per Car per Month Washed $ 0.50 $ 1,500 $ 0.07 $ 0.20 $ 4,100 $ 0.30 $ 8,400 $ 2,000 $ 1,700 $ 0.03 For example, electricity costs are $1,500 per month plus $0.07 per car washed. The company expects to wash 8,500 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 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Required: 8,600 $ 59,050 4,750 2,065 1,940 7,010 8,400 2,200 1,855 28,220 $ 30,830 Calculate the company's revenue and spending…arrow_forwardThis is the second time posting the same question. please read carfully and solve in correctly! thank you.arrow_forward
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