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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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.60 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Rent Administrative expenses Total expense Net operating income Fixed Cost per Month $1,300 $5,000 $8,500 $2,200 $1,800 Revenue Expenses: 8,300 $ 56,220 5,420 2,008 2,290 7,820 8,500 2,400 2,028 30,466 $ 25,754 Cost per Car Washed Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 $0.60 $0.09 $0.25 $0.30 Required: Calculate the company's revenue and spending 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.) TI $0.04

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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.60 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Rent Administrative expenses Total expense Net operating income Fixed Cost per Month $1,300 $5,000 $8,500 $2,200 $1,800 Revenue Expenses: 8,300 $ 56,220 5,420 2,008 2,290 7,820 8,500 2,400 2,028 30,466 $ 25,754 Cost per Car Washed Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 $0.60 $0.09 $0.25 $0.30 Required: Calculate the company's revenue and spending 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.) TI $0.04

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
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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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Actual cars washed Lavage Rapide Income Statement For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.60 per car washed. The actual operating results for August are as follows: Wages and salaries. Depreciation Rent Administrative expenses Total expense Net operating income Fixed Cost per Month $1,300 $5,000 $8,500 $2,200 $1,800 Revenue Expenses: Cleaning supplies Flectricity 8,300 $ 56,220 5,420 2,008 2,290 7,820 8,500 2,400 2,028 30,466 $ 25,754 Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Required: Calculate the company's revenue and spending 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.) Cost per Car Washed F $0.60 $0.09 $0.25 $0.30 U 39 F $0.04
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 data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expenses Rent Actual cars washed Lavage Rapide Income Statement For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.60 per car washed. The actual operating results for August are as follows: Wages and salaries. Depreciation Rent Administrative expenses Total expense Net operating income Fixed Cost per Month $1,300 $5,000 $8,500 $2,200 $1,800 Revenue Expenses: Cleaning supplies Flectricity 8,300 $ 56,220 5,420 2,008 2,290 7,820 8,500 2,400 2,028 30,466 $ 25,754 Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Required: Calculate the company's revenue and spending 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.) Cost per Car Washed F $0.60 $0.09 $0.25 $0.30 U 39 F $0.04
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