Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Fixed Cost Cost per per Month Car Washed $ 0.80 Cleaning supplies Electricity Maintenance $ 1,400 $ 0.07 $ 0.25 Wages and salaries $ 4,400 $ 0.20 Depreciation Rent $ 8,300 $ 2,200 $1,400 Administrative expenses $ 0.05 For example, electricity costs should be $1,400 per month plus $0.07 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $5.90 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 8,200 Revenue $ 49,890 Expenses: Cleaning supplies 6,980 Electricity 1,937 Maintenance 2,265 Wages and salaries 6,380 Depreciation 8,300 Rent 2,400 Administrative expenses 1,705 Total expense 29,967 Net operating income $ 19,923 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 (i.e., zero variance). Input all amounts as positive values.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Planning 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 $ 49,890 6,980 1,937 2,265 6,380 8,300 2,400 1,705 29,967 $ 19,923 Flexible Budget Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Fixed Cost Cost per per Month Car Washed $ 0.80 Cleaning supplies Electricity Maintenance $ 1,400 $ 0.07 $ 0.25 Wages and salaries $ 4,400 $ 0.20 Depreciation Rent $ 8,300 $ 2,200 $1,400 Administrative expenses $ 0.05 For example, electricity costs should be $1,400 per month plus $0.07 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $5.90 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 8,200 Revenue $ 49,890 Expenses: Cleaning supplies 6,980 Electricity 1,937 Maintenance 2,265 Wages and salaries 6,380 Depreciation 8,300 Rent 2,400 Administrative expenses 1,705 Total expense 29,967 Net operating income $ 19,923 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 (i.e., zero variance). Input all amounts as positive values.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Planning 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 $ 49,890 6,980 1,937 2,265 6,380 8,300 2,400 1,705 29,967 $ 19,923 Flexible Budget
Expert Answer:
Answer rating: 100% (QA)
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:
Students also viewed these accounting questions
-
Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the companys costs: Fixed Cost Per Month Cost...
-
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 companys costs: Logistics Solutions...
-
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 companys costs: Fixed Cost per Month...
-
R and Q form equal partnership RQ on February 15. Partner R has a tax year ending on July 31, whereas partner Qs tax year ends on October 31. What taxable year must the partnership use? a. February...
-
In May 2004, Sysco Corporation, the distributor of food and food-related products (not to be confused with Cisco Systems), announced it had signed an interest rate swap. The interest rate swap...
-
Eunuchs (castrated human males) were often used as servants and guards in harems in Asia and the Middle East. In males of some mammal species, castration increases life span. Do eunuchs also have...
-
Comparing current and prior year revenues and expenses and investigating all changes exceeding 10 percent would most likely reveal that: a. Management's capitalization policy for small tools changed...
-
Horowitz Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $176,000, has an estimated useful life of 7 years,...
-
"Equilibrium GDP is the same as full employment." Do you agree or disagree? Explain in 3 sentences. ( 4 points) 2. Assume an economy operates in the intermediate range of its aggregate supply...
-
Cybernetronics Inc. (Cyber) is a Canadian-owned public company which designs and manufactures communications and control systems. The company's year end is May 31. It is now June 2018. You, CPA, are...
-
A discount store purchased some special products at a list price of $1,600. If the broker gives a 20.25% trade discount, what is the amount of the trade discount? a. $950.00 b. $1,276.00 c. $1,706.00...
-
The following information relates to Malema Stores for June 2022. 1. 2. 3. 4. 5. 6. Bought cakes for the staff using petty cash R300. Petty cash voucher 101 was issued. Bought postage stamps for...
-
Swinfen has sold one of its office buildings to a merchant bank and leased it back for 1 0 years. The sale price was $ 1 6 m , which is equivalent to the fair value of the building. The carrying...
-
IMA argues that although activity-based costing (ABC) is not a panacea, it is essential for a company to implement a management accounting system such as ABC for all its stakeholdersits employees,...
-
You need $ 7 0 0 0 per year for four years to go to college. Your father invested $ 1 0 0 0 0 in an account at 7 % , compounded annually, for your education when you were born. If you withdraw the $...
-
Relief Inc. manufactures portable toilets for use on construction sites. Each toilet requires 40 kilograms of plastic and plastic is estimated to cost $5 per kilogram. At the beginning of June, the...
-
Susan's chocolate bar is 23% cocoa. If the weight of the chocolate bar is 78 grams, how many grams of cocoa does it contain? Round your answer to the nearest tenth. 2 answers
-
Why should you not model a decision variable as a random variable with a probability distribution?
-
The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: In addition, 6,000 grams of raw materials inventory...
-
Phillips Company manufactures air-conditioning units for commercial buildings and has noticed considerable variation in shipping expenses from month to month as per the data below: Using the high-low...
-
Quick Supply distributes office supplies to small to medium sized offices throughout the Region of Waterloo, Ontario. Quick Supply sets its prices by marking up its cost of goods sold by 5%. For...
-
A scientist wants to determine whether people who live in places with high levels of air pollution get more colds than people in areas with little air pollution. Do you think it is possible to design...
-
Draw a simple random sample of eight animals from the list of 40 animals in the table. Exercises 2124 refer to the population of animals in the following table. The population is divided into four...
-
Your school colors In Exercises 1524, determine whether the data described are qualitative or quantitative.
Study smarter with the SolutionInn App