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 Cost per per...


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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<br>provides data concerning the company's costs:<br>Fixed Cost<br>Cost per<br>per Month<br>Car Washed<br>Cleaning supplies<br>Electricity<br>Maintenance<br>$0.70<br>$1,100<br>$0.09<br>$0.20<br>$0.30<br>Wages and salaries<br>Depreciation<br>$4,400<br>$8,300<br>$2,000<br>$1,500<br>Rent<br>Administrative expenses<br>$0.02<br>For example, electricity costs are $1,100 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in August<br>and to collect an average of $6.70 per car washed.<br>The actual operating results for August appear below.<br>Lavage Rapide<br>Income Statement<br>For the Month Ended August 31<br>Actual cars washed<br>8,400<br>Revenue<br>$ 57,710<br>Expenses:<br>Cleaning supplies<br>Electricity<br>Maintenance<br>6,310<br>1,817<br>1,900<br>7,250<br>8,300<br>2,200<br>1,566<br>29,343<br>$ 28,367<br>Wages and salaries<br>Depreciation<br>Rent<br>Administrative expenses<br>Total expense<br>Net operating income<br>

Extracted text: 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 Cost per per Month Car Washed Cleaning supplies Electricity Maintenance $0.70 $1,100 $0.09 $0.20 $0.30 Wages and salaries Depreciation $4,400 $8,300 $2,000 $1,500 Rent Administrative expenses $0.02 For example, electricity costs are $1,100 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.70 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,400 Revenue $ 57,710 Expenses: Cleaning supplies Electricity Maintenance 6,310 1,817 1,900 7,250 8,300 2,200 1,566 29,343 $ 28,367 Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income
Required:<br>Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for<br>August. (Indicate the effect of each variance by selecting

Extracted text: 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 Actual Flexible Results Budget Cars washed 8,400 Revenue $ 57,710 Expenses: Cleaning supplies 6,310 Electricity 1,817 Maintenance 1,900 Wages and salaries 7,250 Depreciation 8,300 Rent 2,200 Administrative expenses 1,566 Total expense 29,343 Net operating income 28,367
Jun 01, 2022
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