Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility...
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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 per Cost per Car Washed Month $ 0.80 $ 1,500 $ 0.07 $ 0.30 $ 4,200 $ 0.30 $ 8,300 $ 2,100 $ 1,700 $ 0.04 For example, electricity costs should be $1,500 per month plus $0.07 per car washed. The company actually washed 8,400 cars in August and collected an average of $6.80 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 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 per Cost per Car Washed Month $ 0.80 $ 1,500 $ 0.07 $ 0.30 $ 4,200 $ 0.30 $ 8,300 $ 2,100 $ 1,700 $ 0.04 For example, electricity costs should be $1,500 per month plus $0.07 per car washed. The company actually washed 8,400 cars in August and collected an average of $6.80 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
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To prepare Lavage Rapides flexible budget for August we need to estimate the total expenses based on the actual number of cars washed during the month Heres how to calculate each expense item 1 Revenu... View the full answer
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