Refer to the data for Auto Lavage in Exercises 9–9

Refer to the data for Auto Lavage in Exercises 9–9 and 9–11. 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:

Refer to the data for Auto Lavage in Exercises 9–9

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. In Exercise 9–11, Refer to the data for Auto Lavage. The actual operating results for October appear below:
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 flexible budget performance report that shows the company’s activity variances and revenue and spending variances forOctober.

Members

  • Access to 1 Million+ Textbook solutions
  • Ask any question from 24/7 available
    Tutors
$9.99
VIEW SOLUTION
OR

Non-Members

Get help from Managerial Accounting Tutors
Ask questions directly from Qualified Online Managerial Accounting Tutors .
Best for online homework instance.