FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
$ 0.01
For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,200 cars in
August and to collect an average of $6.60 per car washed. The company actually washed 8.300 cars in August.
Fixed Cost Cost per
per Month Car Washed
$0.40
$ 0.08
$1,100.
$ 0.25
$ 4,400
$ 0.40
$ 8,400
Revenue
Expenses
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.
$2,000
$1,600
Cleaning supplies
Electricity
Lavage Rapide
Activity Variances
For the Month Ended August 31
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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 $ 0.01 For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.60 per car washed. The company actually washed 8.300 cars in August. Fixed Cost Cost per per Month Car Washed $0.40 $ 0.08 $1,100. $ 0.25 $ 4,400 $ 0.40 $ 8,400 Revenue Expenses 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. $2,000 $1,600 Cleaning supplies Electricity Lavage Rapide Activity Variances For the Month Ended August 31
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
$ 0.01
For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,200 cars in
August and to collect an average of $6.60 per car washed. The company actually washed 8.300 cars in August.
Fixed Cost Cost per
per Month Car Washed
$0.40
$ 0.08
$1,100.
$ 0.25
$ 4,400
$ 0.40
$ 8,400
Revenue
Expenses
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.
$2,000
$1,600
Cleaning supplies
Electricity
Lavage Rapide
Activity Variances
For the Month Ended August 31
expand button
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 $ 0.01 For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.60 per car washed. The company actually washed 8.300 cars in August. Fixed Cost Cost per per Month Car Washed $0.40 $ 0.08 $1,100. $ 0.25 $ 4,400 $ 0.40 $ 8,400 Revenue Expenses 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. $2,000 $1,600 Cleaning supplies Electricity Lavage Rapide Activity Variances For the Month Ended August 31
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