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 Cost per Month Cost per Car Washed Cleaning supplies $ 0.60 Electricity $ 1,100 $ 0.09 Maintenance $ 0.30 Wages and salaries $ 4,500 $ 0.20 Depreciation $ 8,400 Rent $ 2,100 Administrative expenses $ 1,300 $ 0.02 For example, electricity costs are $1,100 per month plus $0.09 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.00 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 Cost per Month Cost per Car Washed Cleaning supplies $ 0.60 Electricity $ 1,100 $ 0.09 Maintenance $ 0.30 Wages and salaries $ 4,500 $ 0.20 Depreciation $ 8,400 Rent $ 2,100 Administrative expenses $ 1,300 $ 0.02 For example, electricity costs are $1,100 per month plus $0.09 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.00 per car washed. Required: Prepare the company’s planning budget for August.
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
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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 data concerning the company’s costs:
Fixed Cost per Month | Cost per Car Washed | |
---|---|---|
Cleaning supplies | $ 0.60 | |
Electricity | $ 1,100 | $ 0.09 |
Maintenance | $ 0.30 | |
Wages and salaries | $ 4,500 | $ 0.20 |
$ 8,400 | ||
Rent | $ 2,100 | |
Administrative expenses | $ 1,300 | $ 0.02 |
For example, electricity costs are $1,100 per month plus $0.09 per car washed. The company expects to wash 8,100 cars in August and to collect an average of $6.00 per car washed.
Required:
Prepare the company’s planning budget for August.
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