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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: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.60 Electricity $ 1,300 $ 0.10 Maintenance $ 0.10 Wages and salaries $ 4,200 $ 0.30 Depreciation $ 8,000 Rent $1,900 Administrative expenses $ 1,400 $ 0.02 For example, electricity costs should be $1,300 per month plus $0.10 per car washed. The company expects to wash 8, 100 cars in August and to collect an average of $6.40 per car washed. The company actually washed 8,200 cars in August. Required: Calculate the company's activity variances for August.

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 per Month Cost per Car Washed Cleaning supplies $ 0.60 Electricity $ 1,300 $ 0.10 Maintenance $ 0.10 Wages and salaries $ 4,200 $ 0.30 Depreciation $ 8,000 Rent $1,900 Administrative expenses $ 1,400 $ 0.02 For example, electricity costs should be $1,300 per month plus $0.10 per car washed. The company expects to wash 8, 100 cars in August and to collect an average of $6.40 per car washed. The company actually washed 8,200 cars in August. Required: Calculate the company's activity variances for August.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.60 Electricity $ 1,300 $ 0.10 Maintenance $ 0.10 Wages and salaries $ 4,200 $ 0.30 Depreciation $ 8,000 Rent $1,900 Administrative expenses $ 1,400 $ 0.02 For example, electricity costs should be $1,300 per month plus $0.10 per car washed. The company expects to wash 8, 100 cars in August and to collect an average of $6.40 per car washed. The company actually washed 8,200 cars in August. Required: Calculate the company's activity variances for August.
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 per Month Cost per Car Washed Cleaning supplies $ 0.60 Electricity $ 1,300 $ 0.10 Maintenance $ 0.10 Wages and salaries $ 4,200 $ 0.30 Depreciation $ 8,000 Rent $1,900 Administrative expenses $ 1,400 $ 0.02 For example, electricity costs should be $1,300 per month plus $0.10 per car washed. The company expects to wash 8, 100 cars in August and to collect an average of $6.40 per car washed. The company actually washed 8,200 cars in August. Required: Calculate the company's activity variances for August.
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