Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following tableprovides data concerning the company's expected costs:Fixed CostCost perCar Washed$0.90per MonthCleaning suppliesElectricityMaintenance$ 3,4500.300.506,60010,2004,0003,740Wages and salariesDepreciation0.60RentAdministrative expenses0.07For example, electricity costs are $3,450 per month plus $0.30 per car washed. The company expects to wash 9,900 cars in Octoberand to collect an average of $7.80 per car washed.Auto Lavage's actual level of activity was 10,000 cars. The actual revenues and expenses for October are given below:Auto LavageIncome StatementFor the Month Ended October 3110,000$79,900Actual cars washedSalesVariable expenses:Cleaning suppliesElectricity9,8503,0824,5256,250MaintenanceWages and salariesAdministrativeFixed expenses:ElectricityWages and salariesDepreciation7903,5406,60010,200Rent4,000Administrative3,645Total expenseNet operating income52,482$27,418 AUTO LAVAGE INC.Flexible Budget Performance ReportFor the Month Ended October 31Cost FormulaFlexibleFlexible BudgetActual(per car)BudgetVarianceSalesVariable Expenses:Cleaning suppliesElectricityMaintenanceWages and salariesAdministrativeTotal variable expenses0.00Contribution marginFixed expenses:ElectricityWages and salariesDepreciationRentAdministrativeTotal fixed expenses$0 $AUTO LAVAGE INC.Comprehensive Performance ReportFor the Month Ended October 31Flexible BudgetFlexibleStaticActualSales Volume VarianceVarianceBudgetBudgetNumber of cars10,00010,0009,900Variable Expenses:Total variable expensesFixed expenses:Total fixed expenses$2$

The variance is computed as difference between actual data and budgeted production data of the…

Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company's expected costs: Fixed Cost Cost per Car Washed $0.90 per Month Cleaning supplies Electricity Maintenance $ 3,450 0.30 0.50 Wages and salaries Depreciation 6,600 10,200 0.60 4,000 3,740 Rent Administrative expenses 0.07 For example, electricity costs are $3,450 per month plus $0.30 per car washed. The company expects to wash 9,900 cars in October and to collect an average of $7.80 per car washed. Auto Lavage's actual level of activity was 10,000 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed Sales 10,000 $79,900

Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company's expected costs: Fixed Cost Cost per Car Washed $0.90 per Month Cleaning supplies Electricity Maintenance $ 3,450 0.30 0.50 Wages and salaries Depreciation 6,600 10,200 0.60 4,000 3,740 Rent Administrative expenses 0.07 For example, electricity costs are $3,450 per month plus $0.30 per car washed. The company expects to wash 9,900 cars in October and to collect an average of $7.80 per car washed. Auto Lavage's actual level of activity was 10,000 cars. The actual revenues and expenses for October are given below: Auto Lavage Income Statement For the Month Ended October 31 Actual cars washed Sales 10,000 $79,900

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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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 Costper Month Cost perCar Washed Cleaning supplies $ 0.80 Electricity $ 1,200 $ 0.15 Maintenance $ 0.20 Wages and salaries $ 5,000 $ 0.30 Depreciation $ 6,000 Rent $ 8,000 Administrative expenses $ 4,000 $ 0.10 For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 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 8,800 Revenue $ 43,080 Expenses: Cleaning supplies 7,560 Electricity 2,670 Maintenance 2,260 Wages and salaries 8,500 Depreciation 6,000 Rent 8,000…
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 Costper Month Cost perCar Washed Cleaning supplies $ 0.80 Electricity $ 1,200 $ 0.15 Maintenance $ 0.20 Wages and salaries $ 5,000 $ 0.30 Depreciation $ 6,000 Rent $ 8,000 Administrative expenses $ 4,000 $ 0.10 For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 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 8,800 Revenue $ 43,080 Expenses: Cleaning supplies 7,560 Electricity 2,670 Maintenance 2,260 Wages and salaries 8,500 Depreciation 6,000 Rent 8,000…
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 $ 0.40 Electricity $ 1,000 $ 0.08 Maintenance $ 0.15 Wages and salaries $ 4,700 $ 0.30 Depreciation $ 8,400 Rent $ 1,900 Administrative expenses $ 1,600 $ 0.04 For example, electricity costs should be $1,000 per month plus $0.08 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.30 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 8,300 Revenue $ 53,760 Expenses: Cleaning supplies 3,780 Electricity 1,626 Maintenance 1,470 Wages and salaries 7,520 Depreciation 8,400 Rent 2,100 Administrative expenses 1,828 Total expense 26,724 Net…
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 $ 0.70 Electricity $ 1,100 $ 0.08 Maintenance $ 0.25 Wages and salaries $ 4,200 $ 0.30 Depreciation $ 8,400 Rent $ 2,100 Administrative expenses $ 1,500 $ 0.01 For example, electricity costs should be $1,100 per month plus $0.08 per car washed. The company expects to wash 8,500 cars in August and to collect an average of $6.90 per car washed. The company actually washed 8,600 cars in August. Required: Calculate the company's activity 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.
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