Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal.
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Question:
Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the companys costs:
Fixed Cost
per Month Cost per
Car Washed
Cleaning supplies $
Electricity $ $
Maintenance $
Wages and salaries $ $
Depreciation $
Rent $
Administrative expenses $ $
For example, electricity costs are $ per month plus $ per car washed. The company actually washed cars in August. The company expected to collect an average of $ per car washed.
The actual operating results for August appear below.
Lavage Rapide
Income Statement
For the Month Ended August
Actual cars washed
Revenue $
Expenses:
Cleaning supplies
Electricity
Maintenance
Wages and salaries
Depreciation
Rent
Administrative expenses
Total expense
Net operating income $
Required:
Prepare a report showing the companys revenue and spending variances for August. Indicate the effect of each variance by selecting F for favorable, U for unfavorable, and "None" for no effect ie zero variance Input all amounts as positive values.
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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