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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: Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Administrative expenses Rent Sales Variable expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Budgeted Amount Per Unit (per car) Administrative Total variable expenses Contribution margin Fixed expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost per Month The company expects to charge customers an average of $6.30 per car washed. Required: Prepare a flexible budget for October assuming either 8,000 or 9,000 cars are washed. Administrative Total fixed expenses Operating income $ $1,800 5,100 8,700 2,500 2,200 0.70 0.10 0.30 0.40 1.50 4.80 Cars Washed 8,000 9,000 $ 6.30 $50,400 $ 56,700 5,600 800 2,400 3,200 12,000 38,400 Cost per Car Washed 1,800 5,100 8,700 $0.70 0.10 0.30 0.40 2,500 2,200 20,300 0.09 6,300 900 2,700 3,600 13,500 43,200 1,800 5,100 8,700 2,500 2,200. 20,300 $18,100 $ 22,900 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: Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Administrative expenses Rent Sales Variable expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Budgeted Amount Per Unit (per car) Administrative Total variable expenses Contribution margin Fixed expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost per Month The company expects to charge customers an average of $6.30 per car washed. Required: Prepare a flexible budget for October assuming either 8,000 or 9,000 cars are washed. Administrative Total fixed expenses Operating income $ $1,800 5,100 8,700 2,500 2,200 0.70 0.10 0.30 0.40 1.50 4.80 Cars Washed 8,000 9,000 $ 6.30 $50,400 $ 56,700 5,600 800 2,400 3,200 12,000 38,400 Cost per Car Washed 1,800 5,100 8,700 $0.70 0.10 0.30 0.40 2,500 2,200 20,300 0.09 6,300 900 2,700 3,600 13,500 43,200 1,800 5,100 8,700 2,500 2,200. 20,300 $18,100 $ 22,900
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Budgeted amount Cars washed per unit 8000 9000 Revenue 63 50400 ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-0078111006
14th edition
Authors: Ray Garrison, Eric Noreen and Peter Brewer
Posted Date:
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