Lavage Rapide 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 Administrative expenses Rent Actual cars washed Revenue Expenses: Cleaning supplies. Electricity Maintenance For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,000 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 Wages and salaries Depreciation Rent Administrative expenses Total expenses Net operating income Fixed Cost per Month Cars washed Revenue $ 1,100 $ 5,000 $ 8,400 $ 2,000 $ 1,500 Cost per Car Washed $ 0.70 Actual Results 8,100 $ 56,500 6,100 1,710 2,240 7,768 8,400 2,200 1,568 29,970 $ 26,530 $ 0.08 $ 0.25 $ 0.30 Required: Prepare a flexible budget performance report 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 wariance). Input all amounts as positive values. 8,100 $ 56,500 $ 0.02 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Flexible Budget Planning Budget
Lavage Rapide 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 Administrative expenses Rent Actual cars washed Revenue Expenses: Cleaning supplies. Electricity Maintenance For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,000 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 Wages and salaries Depreciation Rent Administrative expenses Total expenses Net operating income Fixed Cost per Month Cars washed Revenue $ 1,100 $ 5,000 $ 8,400 $ 2,000 $ 1,500 Cost per Car Washed $ 0.70 Actual Results 8,100 $ 56,500 6,100 1,710 2,240 7,768 8,400 2,200 1,568 29,970 $ 26,530 $ 0.08 $ 0.25 $ 0.30 Required: Prepare a flexible budget performance report 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 wariance). Input all amounts as positive values. 8,100 $ 56,500 $ 0.02 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Flexible Budget Planning Budget
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:Lavage Rapide 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
$ 0.02
For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in
August and to collect an average of $6.80 per car washed.
The actual operating results for August are as follows:
Actual cars washed
Revenue
Expenses:
Lavage Rapide
Income Statement
For the Month Ended August 31.
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Fixed
Cost per Cost per
Month
Car Washed
$ 0.70
$ 1,100
$ 0.08
$ 0.25
$ 5,000
$ 0.30
$ 8,400
$ 2,000
$ 1,500
Administrative expenses
Total expenses
Net operating income
Cars washed
Revenue
8,100
$ 56,500
Actual
Results
6,100
1,710
2,240
Required:
Prepare a flexible budget performance report 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.
7,760
8,400
2,200
1,568
29,970
$ 26,530
Lavage Rapide
Flexible Budget Performance Report
For the Month Ended August 31
8,100
$ 56,500
Flexible
Budget
Planning
Budget
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