2 Exercise 9-8 (Static) Flexible Budget [LO9-1] 0.71 Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table points provides data concerning the company's costs: Fixed Cost per Cost per Car Month Washed Cleaning supplies $ 0.80 eBook Electricity $ 1,200 $ 0.15 Maintenance $ 0.20 Wages and salaries $ 5,000 $ 0.30 Hint Depreciation $ 6,000 Rent $ 8,000 Administrative expenses $ 4,000 $ 0.10 Print For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company actually washed 8,800 cars in August and collected an average of $4.90 per car washed. References Required: Prepare the company's flexible budget for August. Lavage Rapide Flexible Budget For the Month Ended August 31 Actual cars washed 8,800 Revenue $ 43, 120 Expenses: Cleaning supplies 7,040 Electricity 1,320 Maintenance ,760 Wages and salaries 1,500 Depreciation 5,000 Rent 3,000 Administrative expenses 880 Total expense 26,500 Net operating income $ 16,6203 Exercise 9-1 (Static) Prepare a Flexible Budget [LO9-1] 0.71 Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. points The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 Book Budgeted diving-hours (q) 100 Revenue ($365.00q) $ 36,500 Expenses: Hint Wages and salaries ($8,000 + $125.00q) 20,500 Supplies ($3.00q) 300 Equipment rental ($1,800 + $32.00q) 5,000 Print Insurance ($3,400) 3,400 Miscellaneous ($630 + $1.80q) 810 Total expense 30,010 References Net operating income $ 6,490 During May, the company's actual activity was 105 diving-hours. Required: Prepare a flexible budget for May. Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense 0 Net operating incon $4 0.71 pomts Refe re n ces Exercise 9-9 (Static) Prepare a Report Showing Revenue and Spending Variances [L09-2] Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost per Cost per Car Month Washed Cleaning supplies 5 0.80 Electricity $ 1,200 $ 0.15 Maintenance $ 0.20 Wages and salaries $ 5,000 $ 0.30 Depreciation $ 6,000 Rent $ 8,000 Administrative expenses $ 4,000 $ 0.10 For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 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 8,800 Revenue $ 43,080 Expenses: Cleaning supplies 7,560 Electricity 2,670 Maintenance 2,260 Wages and salaries 8,500 Depreciation 6,000 Rent 8,000 Administrative expenses 4,950 Total expense 39,940 Net operating income $ 3,140 Required: Calculate the company's 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 (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Total expense Net operating income