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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 estimates concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses $ 0.03 For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $5.90 per car washed. The actual operating results for August are as follows: Rent Actual cars washed Revenue Lavage Rapide Income Statement For the Month Ended August 31 Expenses: cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost per Cost per Month Car Washed $ 0.70 $ 1,100 $ 0.08 $ 0.30 $ 4,900 $ 0.20 $ 8,200 $ 2,200 $ 1,700 Administrative expenses Total expense Net operating income 8,500 $ 51,660 6,380 1,742 2,760 6,940 8,200 2,400 1,852 30,274 $ 21,386 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., zere variance). Input all amounts as positive values.)

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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses $ 0.03 For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $5.90 per car washed. The actual operating results for August are as follows: Rent Actual cars washed Revenue Lavage Rapide Income Statement For the Month Ended August 31 Expenses: cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Fixed Cost per Cost per Month Car Washed $ 0.70 $ 1,100 $ 0.08 $ 0.30 $ 4,900 $ 0.20 $ 8,200 $ 2,200 $ 1,700 Administrative expenses Total expense Net operating income 8,500 $ 51,660 6,380 1,742 2,760 6,940 8,200 2,400 1,852 30,274 $ 21,386 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., zere variance). Input all amounts as positive values.)

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
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Net operating income 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.) Cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance. Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income $ 21,386 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Results 8,500 $ 51,660 6,380 1,742 2,760 6,940 8,200 2,400 1,852 30,274 $ 21,386 Flexible Budget. Planning. Budget
Transcribed Image Text:Net operating income 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.) Cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance. Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income $ 21,386 Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Results 8,500 $ 51,660 6,380 1,742 2,760 6,940 8,200 2,400 1,852 30,274 $ 21,386 Flexible Budget. Planning. 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: Cleaning supplies Electricity Maintenance Rent Actual cars washed Wages and salaries. Depreciation Administrative expenses $ 0.03 For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $5.90 per car washed. The actual operating results for August are as follows: Revenue Expenses: Lavage Rapide Income Statement For the Month Ended August 31 Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Fixed Cost per Month Rent $ 1,100. Administrative expenses Total expense Net operating income. $ 4,900 $ 8,200 $ 2,200 $ 1,700 Cost per Car Washed $ 0.70 8,500 $51,660 6,380 1,742 $ 0.08 $ 0.30 $ 0.20 2,760 6,940 8,200 2,400 1,852 30,274 $ 21,386 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.) www
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: Cleaning supplies Electricity Maintenance Rent Actual cars washed Wages and salaries. Depreciation Administrative expenses $ 0.03 For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $5.90 per car washed. The actual operating results for August are as follows: Revenue Expenses: Lavage Rapide Income Statement For the Month Ended August 31 Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Fixed Cost per Month Rent $ 1,100. Administrative expenses Total expense Net operating income. $ 4,900 $ 8,200 $ 2,200 $ 1,700 Cost per Car Washed $ 0.70 8,500 $51,660 6,380 1,742 $ 0.08 $ 0.30 $ 0.20 2,760 6,940 8,200 2,400 1,852 30,274 $ 21,386 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.) www
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