Chapter 9 - Flexible budgets - In-Class Activities

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Sheridan College *

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Industrial Engineering

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Jan 9, 2024

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Student Name: Instructions: 1. Please input the your name at the top section of this sheet. 2. Save the file under your name followed by Week Inclass. For Example John Do - Week 3. Please read the given of each exercise and answer each part in the excel sheet provid 4. The areas highlighted in green are dropdown menu. You will need to select the accoun 5. The areas highlighted in blue are to input your numerical answers in. 6. All other areas are locked and cannot be accessed.
k1 Inclass. ded for that part. nt title or date from that menu.
Exercise 9-8 Preparing a Flexible Budget Auto Lavage is a Canadian company that owns and operates a large automatic carw The following table provides data concerning the company’s costs: $ 0.70 $ 1,400 0.10 0.30 4,700 0.40 8,300 2,100 Administrative 1,800 0.05 The company expects to charge customers an average of $5.90 per car washed. Required: Prepare a flexible budget for October assuming either 8,000 or 9,000 cars are washe AUTO LAVAGE INC. Flexible Budget For the Month Ended October 31 Per Unit Cars Washed Number of units 8,000 9,000 Sales $ 5.90 $ 47,200 $ 53,100 Variable expenses Cleaning supplies 0.70 5,600 6,300 Electricity 0.10 800 900 Maintenance 0.30 2,400 2,700 Wages and salaries 0.40 3,200 3,600 Administrative 0.05 400 450 Total variable expenses 1.55 12,400 13,950 Contribution margin $ 4.35 $ 34,800.00 $ 39,150.00 Fixed expenses Wages and salaries 4,700 4,700 Rent 2,100 2,100 Depreciation 8,300 8,300 Electricity 1,400 1,400 Administrative 1,800 1,800 Total fixed expenses 18,300 18,300 Operating income $ 16,500 $ 20,850 Fixed Cost per Month Cost per Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent
wash facility near Quebec. ed.
Exercise 9-9 Flexible Budget Performance Report Auto Lavage is a Canadian company that owns and operates a large automatic c $ 0.70 $ 1,400 0.10 0.30 4,700 0.40 8,300 2,100 Administrative 1,800 0.05 For example, electricity costs are $1,400 per month plus $0.10 per car washed. T Auto Lavage’s actual level of activity was 8,100 cars. The actual revenues and e below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed 8,100 Sales $ 49,300 Variable expenses Cleaning supplies 6,075 Electricity 891 Maintenance 2,187 Wages and salaries 3,402 Administrative 486 Fixed expenses Electricity 1,450 Wages and salaries 4,700 Depreciation 8,300 Rent 2,100 Administrative 1,745 Total expense 31,336 Net operating income $ 17,964 Required: The following table provides data concerning the company’s expected costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent 8,000 cars in October and to collect an average of $5.90 per car washed.
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