Exercise $9-13($Algo$)$ Prepare a Flexible Budget Performance Report $[$LO$9-4]$

Lavage Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company$$s costs:

Fixed Cost per Month Cost per Car Washed

Cleaning supplies $ $0\mathrm{.}40$

Electricity $ $1,200$ $ $0\mathrm{.}05$

Maintenance $ $0\mathrm{.}15$

Wages and salaries $ $4,100$ $ $0\mathrm{.}30$

Depreciation $ $8,200$

Rent $ $2,100$

Administrative expenses $ $1,700$ $ $0\mathrm{.}01$

For example, electricity costs should be $$1,200$ per month plus $$0\mathrm{.}05$ per car washed. The company expects to wash $8,400$ cars in August and to collect an average of $$6\mathrm{.}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 $8,500$

Revenue $ $60,060$

Expenses:

Cleaning supplies $3,860$

Electricity $1,590$

Maintenance $1,500$

Wages and salaries $6,980$

Depreciation $8,200$

Rent $2,300$

Administrative expenses $1,684$

Total expenses $26,114$

Net operating income $ $33,946$

Required:

Prepare a flexible budget performance report for August.