# Refer to the data for Auto Lavage in Exercise 99. The actual operating results for October appear below: In Exercise

## Question:

Refer to the data for Auto Lavage in Exercise 9€“9. The actual operating results for October appear below:
In Exercise 9€“9, Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company€™s costs:

For example, electricity costs are \$1,400 per month plus \$0.10 per car washed. The company expects to wash 8,000 cars in October and to collect an average of \$5.90 per car washed.
Auto Lavage
Income Statement
For the Month Ended October 31
Actual cars washed . . . . . . . . . . . . . . . 8,100
Revenue . . . . . . . . . . . . . . . . . . . . . . . \$49,300
Expenses:
Cleaning supplies . . . . . . . . . . . . . . 6,100
Electricity . . . . . . . . . . . . . . . . . . . . 2,170
Maintenance . . . . . . . . . . . . . . . . . . 2,640
Wages and salaries. . . . . . . . . . . . . 8,260
Depreciation . . . . . . . . . . . . . . . . . . 8,300
Rent . . . . . . . . . . . . . . . . . . . . . . . . 2,300
Administrative expenses . . . . . . . . . 2,100
Total expense . . . . . . . . . . . . . . . . . . . 31,870
Net operating income . . . . . . . . . . . . . \$17,430

Required:
Prepare a report showing the company€™s activity variances forOctober.

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## Step by Step Answer:

Related Book For

## Managerial Accounting

ISBN: 978-0078111006

14th edition

Authors: Ray Garrison, Eric Noreen and Peter Brewer

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Question Posted: September 27, 2013 07:39:31