Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 $ 0.60 Electricity $ 1,200 $ 0.10 Maintenance $ 0.15 Wages and salaries $ 4,500 $ 0.30 Depreciation $ 8,200 Rent $ 2,200 Administrative expenses $ 1,700 $ 0.05 For example, electricity costs should be $1,200 per month plus $0.10 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.40 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 expense Net operating income Required: 8,208 $ 53,948 5,368 1,988 1,455 7,298 8,208 2,400 2,005 28,690 $ 25,250 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. Revenue Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Expenses Cleaning supplies

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 $ 0.60 Electricity $ 1,200 $ 0.10 Maintenance $ 0.15 Wages and salaries $ 4,500 $ 0.30 Depreciation $ 8,200 Rent $ 2,200 Administrative expenses $ 1,700 $ 0.05 For example, electricity costs should be $1,200 per month plus $0.10 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.40 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 expense Net operating income Required: 8,208 $ 53,948 5,368 1,988 1,455 7,298 8,208 2,400 2,005 28,690 $ 25,250 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. Revenue Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Expenses Cleaning supplies

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
Problem 4EA: Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on...
See similar textbooks
icon
Related questions
Question

Dot image plaes .10.

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 $ 0.60 Electricity $ 1,200 $ 0.10 Maintenance $ 0.15 Wages and salaries $ 4,500 $ 0.30 Depreciation $ 8,200 Rent $ 2,200 Administrative expenses $ 1,700 $ 0.05 For example, electricity costs should be $1,200 per month plus $0.10 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.40 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 expense Net operating income Required: 8,208 $ 53,948 5,368 1,988 1,455 7,298 8,208 2,400 2,005 28,690 $ 25,250 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. Revenue Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Expenses Cleaning supplies
Transcribed Image Text: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 $ 0.60 Electricity $ 1,200 $ 0.10 Maintenance $ 0.15 Wages and salaries $ 4,500 $ 0.30 Depreciation $ 8,200 Rent $ 2,200 Administrative expenses $ 1,700 $ 0.05 For example, electricity costs should be $1,200 per month plus $0.10 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.40 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 expense Net operating income Required: 8,208 $ 53,948 5,368 1,988 1,455 7,298 8,208 2,400 2,005 28,690 $ 25,250 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. Revenue Lavage Rapide Revenue and Spending Variances For the Month Ended August 31 Expenses Cleaning supplies
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
SEE MORE TEXTBOOKS