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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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Actual cars washed Revenue Expenses Lavage Rapide Income Statement For the Month Ended August 31 Cleaning supplies Electricity Maintenance For example, electricity costs are $1,400 per month plus $0.06 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.30 per car washed. The actual operating results for August are as follows: Wages and salaries Depreciation Fixed Cost per Month. Rent $1,400 Administrative expenses Total expense Net operating income $4,500 $0,100 $2,000 $1,300 0,500 $55,020 4,700 1,874 1,920 6,540 0,100 Cost per Car Washed $0.50 $0.06 $0.20 $0.20 2,200 1,620 26,954 $28,066 $0.05 Required: Calculate the company's revenue and spending variances for August. (Indicate the effect of each varlance by selecting "F" for Rent Administrative expenses Total expense Net operating income Required: Calculate the company's revenue and spending variances for August. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero varlance). Input all amounts as positive values.) Revenue Expenses: Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Cleaning supplies Electricity Maintenance 2,200 1,620 26,954 $28,066 Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Actual cars washed Revenue Expenses Lavage Rapide Income Statement For the Month Ended August 31 Cleaning supplies Electricity Maintenance For example, electricity costs are $1,400 per month plus $0.06 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.30 per car washed. The actual operating results for August are as follows: Wages and salaries Depreciation Fixed Cost per Month. Rent $1,400 Administrative expenses Total expense Net operating income $4,500 $0,100 $2,000 $1,300 0,500 $55,020 4,700 1,874 1,920 6,540 0,100 Cost per Car Washed $0.50 $0.06 $0.20 $0.20 2,200 1,620 26,954 $28,066 $0.05 Required: Calculate the company's revenue and spending variances for August. (Indicate the effect of each varlance by selecting "F" for Rent Administrative expenses Total expense Net operating income Required: Calculate the company's revenue and spending variances for August. (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero varlance). Input all amounts as positive values.) Revenue Expenses: Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Cleaning supplies Electricity Maintenance 2,200 1,620 26,954 $28,066 Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income
Expert Answer:
Answer rating: 100% (QA)
To calculate the companys revenue and spending variances for August well compare the actual results against the expected costs based on the number of car washes The company expects to wash 8400 cars i... View the full answer
Related Book For
Managerial Accounting
ISBN: 9781259275814
11th Canadian Edition
Authors: Ray H Garrison, Alan Webb, Theresa Libby
Posted Date:
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