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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 Cost per Car per Month Washed $ 0.50 $ 1,100 $ 0.07 $ 0.30 $ 4,200 $ 0.40 $ 8,200 $2,100 $ 1,400 $ 0.04 For example, electricity costs should be $1,100 per month plus $0.07 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 actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Required: 8,300 $ 56,220 4,600 1,644 2,700 7,840 8,200 2,300 1,628 28,912 $27,308 Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. (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.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Cars washed Actual Results 8,300 $ 56,220 Revenue Expenses: Cleaning supplies 4,600 Electricity 1,644 Maintenance 2,700 Wages and salaries 7,840 Depreciation 8,200 Rent 2,300 Administrative expenses 1,628 Total expense 28,912 Net operating income $ 27,308 Flexible Planning Budget Budget 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 Cost per Car per Month Washed $ 0.50 $ 1,100 $ 0.07 $ 0.30 $ 4,200 $ 0.40 $ 8,200 $2,100 $ 1,400 $ 0.04 For example, electricity costs should be $1,100 per month plus $0.07 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 actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Required: 8,300 $ 56,220 4,600 1,644 2,700 7,840 8,200 2,300 1,628 28,912 $27,308 Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. (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.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Cars washed Actual Results 8,300 $ 56,220 Revenue Expenses: Cleaning supplies 4,600 Electricity 1,644 Maintenance 2,700 Wages and salaries 7,840 Depreciation 8,200 Rent 2,300 Administrative expenses 1,628 Total expense 28,912 Net operating income $ 27,308 Flexible Planning Budget Budget
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To prepare the flexible budget performance report we need to calculate the flexible budget amounts b... View the full answer
Related Book For
Managerial Accounting
ISBN: 9781259275814
11th Canadian Edition
Authors: Ray H Garrison, Alan Webb, Theresa Libby
Posted Date:
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