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age Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates cerning the company's costs: leaning supplies lectricity aintenance ages and salaries epreciation ministrative expenses ent ctual cars washed evenue xpenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent example, electricity costs should be $1,500 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in ust and to collect an average of $6.80 per car washed. actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Administrative expenses otal expenses et operating income Fixed Cost per Cost per Month Car Washed $ 0.60 $ 1,500 $ 0.08 $ 4,400 $ 8,000 $ 2,100 $ 1,500 venue 8,100 $ 56,500 5,300 2,110 1,040 7,160 8,000 2,300 1,720 27,630 $ 28,870 Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 $ 0.10 $ 0.30 $ 0.04 quired: culate the company's revenue and spending variances for August. ce: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero ance). Input all amounts as positive values.

age Rapide owns and operates a large automatic car wash facility near Montreal. The following table provides estimates cerning the company's costs: leaning supplies lectricity aintenance ages and salaries epreciation ministrative expenses ent ctual cars washed evenue xpenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent example, electricity costs should be $1,500 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in ust and to collect an average of $6.80 per car washed. actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Administrative expenses otal expenses et operating income Fixed Cost per Cost per Month Car Washed $ 0.60 $ 1,500 $ 0.08 $ 4,400 $ 8,000 $ 2,100 $ 1,500 venue 8,100 $ 56,500 5,300 2,110 1,040 7,160 8,000 2,300 1,720 27,630 $ 28,870 Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 $ 0.10 $ 0.30 $ 0.04 quired: culate the company's revenue and spending variances for August. ce: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero ance). 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
Section: Chapter Questions
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Lavage Rapide 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 Rent $ 0.04 For example, electricity costs should be $1,500 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.80 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation. Rent Administrative expenses. Total expenses Net operating income Fixed Cost per Cost per Month Car Washed $ 0.60 $ 1,500 $ 0.08 $0.10 $ 0.30 $ 4,400 $ 8,000 $ 2,100 $ 1,500 Revenue 8,100 $ 56,500 5,300 2,110 1,040 7,160 8,000 2,300 1,720 27,630 $ 28,870 Required: Calculate the company's revenue and spending variances for August. Note: 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 Revenue and Spending Variances For the Month Ended August 31
Transcribed Image Text:Lavage Rapide 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 Rent $ 0.04 For example, electricity costs should be $1,500 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.80 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation. Rent Administrative expenses. Total expenses Net operating income Fixed Cost per Cost per Month Car Washed $ 0.60 $ 1,500 $ 0.08 $0.10 $ 0.30 $ 4,400 $ 8,000 $ 2,100 $ 1,500 Revenue 8,100 $ 56,500 5,300 2,110 1,040 7,160 8,000 2,300 1,720 27,630 $ 28,870 Required: Calculate the company's revenue and spending variances for August. Note: 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 Revenue and Spending Variances For the Month Ended August 31
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