Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following tabl provides data concerning the company's costs: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost per Month $2,700 6,000 9,600 3,400 3,100 Cost per Car Washed $0.70 0.10 0.30 0.40 0.07 The company expects to charge customers an average of $7.20 per car washed. Required: Prepare a flexible budget for October assuming either 8.000 or 9.000 cars are washed.
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- Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility nearMontreal. The following table provides data concerning the company’s costs:Fixed Cost Cost per Carper Month WashedCleaning supplies ...................... $0.80Electricity .................................. $1,200 $0.15Maintenance ............................ $0.20Wages and salaries ................. $5,000 $0.30Depreciation .............................. $6,000Rent .......................................... $8,000Administrative expenses .......... $4,000 $0.10For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company expects towash 9,000 cars in August and to collect an average of $4.90 per car washed.Required:Prepare the company’s planning budget for August.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: Fixed Costper Month Cost perCar Washed Cleaning supplies $ 0.70 Electricity $ 1,400 $ 0.09 Maintenance $ 0.30 Wages and salaries $ 4,400 $ 0.30 Depreciation $ 8,300 Rent $ 1,900 Administrative expenses $ 1,700 $ 0.03 For example, electricity costs are $1,400 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.20 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 8,400 Revenue $ 53,560 Expenses: Cleaning supplies 6,310 Electricity 2,117 Maintenance 2,730 Wages and salaries 7,250 Depreciation 8,300 Rent 2,100 Administrative…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: Fixed Costper Month Cost perCar Washed Cleaning supplies $ 0.70 Electricity $ 1,200 $ 0.09 Maintenance $ 0.25 Wages and salaries $ 4,700 $ 0.30 Depreciation $ 8,300 Rent $ 2,200 Administrative expenses $ 1,800 $ 0.03 For example, electricity costs are $1,200 per month plus $0.09 per car washed. The company actually washed 8,300 cars in August and collected an average of $6.80 per car washed. Required: Prepare the company’s flexible budget for August.
- 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: Fixed Costper Month Cost perCar Washed Cleaning supplies $ 0.50 Electricity $ 1,100 $ 0.06 Maintenance $ 0.25 Wages and salaries $ 4,700 $ 0.20 Depreciation $ 8,000 Rent $ 2,000 Administrative expenses $ 1,400 $ 0.03 For example, electricity costs are $1,100 per month plus $0.06 per car washed. The company actually washed 8,500 cars in August and collected an average of $6.00 per car washed. Required: Prepare the company’s flexible budget for August. Lavage Rapide Flexible Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating incomeRoper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. A. Wood used to produce desks ($125.00 per desk) B. Production labor used to produce desks ($15 per hour) C. Production supervisor salary ($45,000 per year) D. Depreciation on factory equipment ($60,000 per year) E. Selling and administrative expenses ($45,000 per year) F. Rent on corporate office ($44,000 per year) G. Nails, glue, and other materials required to produce desks (varies per desk) H. Utilities expenses for production facility I. Sales staff commission (5% of gross sales)Ethan Manufacturing Incorporated produces floor mats for automobiles. The owner, Joseph Ethan, has asked you to assist in estimating maintenance costs. Together, you and Joseph determine that the single best cost driver for maintenance costs is machine hours. These data are from the previous fiscal year for maintenance costs and machine hours: Month Maintenance Costs Machine Hours 1 $ 2,780 1,870 2 2,940 1,950 3 3,090 2,030 4 3,200 2,050 5 3,280 2,080 6 3,250 2,060 7 3,190 2,040 8 3,030 2,020 9 2,800 1,880 10 2,400 1,280 11 2,410 1,480 12 2,630 1,770 Required: 1. What is the cost equation for maintenance costs using the high-low method? 2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1.
- Sunstar Manufacturing Company produces special kitchen utensils using the JIT system. Transactions for the current period are as follow:(1) Raw materials purchased, P1,590,000(2) Direct labor costs of P2,500,000 were incurred.(3) Actual overhead costs of P3,500,000 were incurred.(4) Conversion costs are directly charged to cost of sales.(5) Finished goods, end amounted to P420,000 of which P200,000 is materials.(6) Finished goods, beg amounted to P600,000 of which P350,000 is materials(7) RIPI, beginning P850,000, of which materials is P600,000.(8) RIPI, ending P750,000, of which materials is P500,000. The cost of sales for the period amounted to:ABC Manufacturing is a producer of a local product used in house cleaning, called Agent C. The production manager isrequired to present a production report for the month August, however he got no idea on what information he neededfor the report, and what analysis could be made to help the top management on their decision-making.The production manager sought your expertise on the subject matter and gave to you the following information:Sales (in Pesos) 4,957,875.00Sales Volume 22,500.00Variable Costs:Cost of Direct Raw Materials 895,000.00Cost of Direct Labor 530,000.00Cost of Packaging Materials 124,200.00Fixed Costs:Monthly Depreciation 650,000.00Monthly Rent of Warehouse 100,000.00Fixed Monthly Allowance for Electricity 675,000.00Other Fixed Manufacturing Overhead 146,700.00Required:BREAKEVEN ANALYSIS1. Compute the selling price per unit of Agent C. _________________2. Compute the variable cost per unit of Agent C. _________________3. Compute the variable cost rate of Agent C.…Within the costing system of Asempa manufacturing company the following types of expense are incurred. GHȼCost of oils used to lubricate production machinery 20,000Motor vehicle licences for lorries 50,000Depreciation of factory plant and equipment 40,000Cost of chemicals used in the laboratory 10,000Commission paid to sales representatives 25,000Salary of the secretary to the finance director 22,000Trade discount given to customers 12,000Holiday pay of machine operatives 32,000Salary of security guard in raw material warehouse 15,000Fees to advertising agency 8,000Rent of finished goods…
- The related data of Pirena Company: Solvents and cleaners used by the custodians to clean the textbook printing presses P12,500 Depreciation on the automobiles used by sales representative P20,000 Fire insurance on factory building P18,200 Shipping costs on textbooks sold P 35,700 How much is the manufacturing overhead?The following information relates to Carried Away Hot Air Balloons, Inc.: Costs Amount Advertising Costs $10,400 Sales Salary 13,800 Sales Revenue 630,000 President's Salary 52,000 Office Rent 67,000 Manufacturing Equipment Depreciation 3000 Indirect Materials Used 6600 Indirect Labor 13,300 Factory Repair and Maintenance 820 Direct Materials Used 31,070 Direct Labor 31,900 Delivery Vehicle Depreciation 810 Administrative Salaries 24,700 How much was Carried Away's manufacturing overhead? Group of answer choices $19,900 $62,970 $23,720 $20,720The following events took place for digital video manufacturing company during January, the first month of it's operations as a producer of digital video monitors: a. Purchased $ 168500 of materials. b. Used $149250 of direct materials in production. c. Incurred $360000 of direct labor wages. d. Incurred $120000 of factory overhead. e. Transferred $600000 of work in process to finished goods. f. Sold goods for $875000. g. Sold goods with a cost of $525000. h. Incurred $125000 of selling expense. I. Incurred $80000 of administrative expenses. Using the information given, a). Prepare the January income statement for digital video manufacturing company. b). Determine the material inventory, work in process inventory, and finished goods inventory balances at the end of the first month of operations.