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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: Fixed Cost per Month Cost per Car Washed $0.60 Cleaning supplies Electricity Maintenance $1,200 $0.10 $0.15 Wages and salaries $4,600 $0.40 Depreciation $8,300 Rent $1,900 Administrative expenses $1,600 $0.04 For example, electricity costs are $1,200 per month plus $0.10 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.00 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 21 Actual care vashed 8,200 Revenue 050,700 Expenses: Cleaning supplies 5,360 Electricity 1,980 Maintenance 1,455 9,200 Mages and salaries Depreciation 8,300 Bent 2,100 Administrative expenses 1,024 Total expense 29,219 Net operating income $21,401 Required: Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Flexible Planning Budget Budget Cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Actual Results 8,200 $ 50,700 5,360 1,980 1,455 8,200 8,300 2,100 1,824 29,219 21,481 $ 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 Month Cost per Car Washed $0.60 Cleaning supplies Electricity Maintenance $1,200 $0.10 $0.15 Wages and salaries $4,600 $0.40 Depreciation $8,300 Rent $1,900 Administrative expenses $1,600 $0.04 For example, electricity costs are $1,200 per month plus $0.10 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.00 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 21 Actual care vashed 8,200 Revenue 050,700 Expenses: Cleaning supplies 5,360 Electricity 1,980 Maintenance 1,455 9,200 Mages and salaries Depreciation 8,300 Bent 2,100 Administrative expenses 1,024 Total expense 29,219 Net operating income $21,401 Required: Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Flexible Planning Budget Budget Cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income Actual Results 8,200 $ 50,700 5,360 1,980 1,455 8,200 8,300 2,100 1,824 29,219 21,481 $
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Q Prepare a flexible budget performance report that shows the companys revenue and spending variance... 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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