Refer to the data in Exercise 13.1. Lavage Rapide’s owner-manager would like to prepare a budget for August assuming an activity level of 8,800 cars.

Required
Prepare a static budget for August. Use Exhibit 13.1 in the chapter as your guide.

Exhibit 13.1

Data from Exercise 13.1

An incomplete flexible budget is given below for Lavage Rapide, a Swiss company that owns and operates a large automatic carwash facility near Geneva. The Swiss currency is the Swiss franc, which is denoted by SFr.

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Budgeted number of client-visits Budget variable overhead costs: Hairstyling supplies Client gratuities Electricity Total variable overhead cost Budgeted fixed overhead costs: Support staff wages and salaries Rent Insurance Utilities other than electricity Total fixed overhead cost Total budgeted overhead cost Rick's Hairstyling Static budget for the month ended 31 March 5,000 $6,000 20,000 1,000 27,000 8,000 12,000 1,000 500 21,500 $48,500