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 Cost per Car Washed $ 0.50 $ 0.09 $ 0. 25 $ 0.30 per Month Cleaning supplies Electricity Maintenance $ 1,100 Wages and salaries Depreciation Rent Administrative expenses $ 4,800 $ 8,400 $ 1,900 $ 1,500 $ 0.04 For example, electricity costs should be $1,100 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $5.90 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 8,500 $ 51,660 Revenue Expenses: Cleaning supplies Electricity 4,700 1,826 2,340 7,680 8,400 2,100 1,736 Maintenance Wages and salaries Depreciat: Rent Administrative expenses Total expense 28, 782 Net operating income $ 22,878
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 Cost per Car Washed $ 0.50 $ 0.09 $ 0. 25 $ 0.30 per Month Cleaning supplies Electricity Maintenance $ 1,100 Wages and salaries Depreciation Rent Administrative expenses $ 4,800 $ 8,400 $ 1,900 $ 1,500 $ 0.04 For example, electricity costs should be $1,100 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $5.90 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 8,500 $ 51,660 Revenue Expenses: Cleaning supplies Electricity 4,700 1,826 2,340 7,680 8,400 2,100 1,736 Maintenance Wages and salaries Depreciat: Rent Administrative expenses Total expense 28, 782 Net operating income $ 22,878
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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