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 Cost per per Month Car Washed Cleaning supplies Electricity $ 0.80 $ 0.06 $ 0.15 $ 0. 20 $ 1,200 Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 4,200 $ 8,100 $ 2,100 $ 1,500 $ 0.04 For example, electricity costs are $1,200 per month plus $0.06 per car washed. The company expects to wash 8,400 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 Planning Budget For the Month Ended August 31 Actual cars washed
Q: Please Help
A: Budgeting is an important part of the business process. Without budgeting a business cannot track…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Budgeting is an important part of the business process. Without budgeting a business cannot track…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Flexible cost = [ (Variable cost per unit x Actual car washed) + Fixed cost ]
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Fixed costs do not change with the level of activity. Expenses will be calculated as follows:…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Planning budget is a budget prepared for planned level of activity. Variable cost = Activity level x…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Revenue and Spending Variance = Actual Activity - Flexible Activity Activity variance = Plannned…
Q: R Ltd. makes ready mixed cement and operates a small fleet hicles which delivers the product to…
A: Standard rate per tonne per km means: Expected cost of carrying a tonne of weight for a distance of…
Q: $ 0.70 Electricity $ 1,400 $ 0.09 Maintenance $ 0.30 Wages and salaries $ 4,400 $…
A: A flexible budget is a budget that includes all the flexibility and change in the output. In…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Activity Variance = ( Actual Units - Budgeted Units ) * Price Net Operating Income = Revenue -…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: A flexible budget is that budget which includes all the flexibility and change in the output. In…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Budgeting: It is an important part of the business process. Without budgeting a business cannot…
Q: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.80 Electricity $ 1,200 $…
A: Flexible budget is a type of budget which adjusts to the changing level of activities.
Q: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.80 Electricity $ 1,200 $ 0.15…
A: Solution: Lavage Rapide Revenue and spending Variances For the month ended August 31…
Q: Miracle Car Wash located in Nashville, Tennessee has been providing Interior and exterior car washes…
A: A flexible budget is prepared on the basis of the budgeted rate and on the basis of different…
Q: Lavado Rapldo is a Mexican company that owns and operates a large automatic car wash facility near…
A: The flexible budget is prepared to estimate the cost for every production level.
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Net operating income = Revenue - Total expense where, Total expense = Fixed expenses + Variable…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Net income- The balance left over after subtracting the cost of products sold and expenses from a…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: The discrepancy between the planning budget and the flexible budget, which is produced by the…
Q: help
A: Planning budget of income statement shows the projected revenues and expenses based on the estimated…
Q: avage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: The flexible budget is prepared on the basis of standard cost and actual output. A flexible budget…
Q: Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near…
A: The variance is computed as difference between actual data and budgeted production data of the…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Lets understand the basics. For calculating activity variance, budgeted cost for decided activity is…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: ANSWER For example, electricity costs should be $1,100 per month plus $0.09 per car washed. The…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Budget is a statement showing the expected values of various line items in an organization. Budgets…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: A flexible budget is a budget that is prepared at the beginning of the period which varies with the…
Q: Lavage Rapide Is a Canadlan company that owns and operates a large automatic car wash facility near…
A: Lavage Rapide Planning Budget For the month ended August 31 Particulars Car Washed 8500…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: The variance is the difference between standard and actual production data of the business.
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Every spending variation should be compared to the assumptions that were utilized to create the…
Q: please help
A: Budgeting is an important part of the business process. Without budgeting a business cannot track…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Flexible budget presents expected cost for actual number of units. Flexible budget can be modified…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: What is meant by budgeting? It is the method of forecasting the future inflows and outflows of an…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Budgeting is an important part of the business process. Without budgeting a business cannot track…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Net operating Income= Revenues- Total expense
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: A flexible budget is a budget that includes all the flexibility and change in the output. In…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Solution: To compute revenue and spending variance actual revenue and costs are compared with…
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A: Formulas that are used:-
Q: Adan Sdn Bhd (ASB) operates in a large town area. Currently, ASB has its own factory to produce…
A: We shall compare the statement of relevant cost to be incurred under both alternatives for 5,000…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Prepare a flexible budget performance report showing company revenue & spending variance and…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Revenue = No. of Actual cars washed x price per car washed = 8000 x 6.30 = $50400
Q: screen shot included
A: An activity variance is a variance between the flexible budget numbers and planning budget numbers A…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Solution:
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Revenue and spending variances are the differences between the actual and the budgeted figures of…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Variance Analysis helps an organization to understand the variations in the actual results of…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Budget is of two types on the basis of flexibility: Fixed budget Flexible budget Fixed budget is…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Solution: Flexible budget is the budget which represents budgeted cost based on actual level of…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Variance is considered as the difference between budgeted value and actual results. The management…
Q: help
A: An activity variance is calculated by measuring the difference between the budget prepared for the…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: REVENUE & SPENDING VARIANCE IS USED TO FIND THE DIFFERENCE BETWEEN THE BUDGETED AND ACTUAL…
Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
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- Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur. Classify these costs as fixed or variable costs and as product or period costs. Lumber used to construct decks ($12.00 per square foot) Carpenter labor used to construct decks ($10 per hour) Construction supervisor salary ($45,000 per year) Depreciation on tools and equipment ($6,000 per year) Selling and administrative expenses ($35,000 per year) Rent on corporate office space ($34,000 per year) Nails, glue, and other materials required to construct deck (varies per job)Classify Costs Following is a list of various costs incurred in producing replacement automobile parts. With respect to the production and sale of these auto parts, classify each cost as either variable, fixed, or mixed. 1. Oil used in manufacturing equipment 2. Plastic 3. Property taxes, 165,000 per year on factory building and equipment 4. Salary of plant manager 5. Cost of labor for hourly workers 6. Packaging 7. Factory cleaning costs, 6,000 per month 8. Metal 9. Rent on warehouse, 10,000 per month plus 25 per square foot of storage used 10. Property insurance premiums, 3,600 per month plus 0.01 for each dollar of property over 1,200,000 11. Straight-line depreciation on the production equipment 12. Hourly wages of machine operators 13. Electricity costs, 0.20 per kilowatt-hour 14. Computer chip (purchased from a vendor) 15. Pension cost, 1.00 per employee hour on the jobLavage 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 $ 0.50 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 incomeLavage 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.
- Roper 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)Skyler White, Inc. manufactures and sells two products: Jeeps and Cell Phones. The following information was extracted from the company's accounting records from last period. Jeeps Cell Phones Sales Revenue $300,000 $275,000 Product Costs $220,000 $150,000 Period Costs $25,000 $30,000 The Jeep product line has the following breakout of product costs: Direct Materials of $60,000, Direct Labor of $30,000, and Manufacturing Overhead of $35,000. The remaining product costs are traceable fixed manufacturing overhead costs. The period costs of the Jeep line are made up of $15,000 of Sales Commissions (which is paid as a percentage of sales revenue), and $10,000 of arbitrarily allocated common fixed costs. The Cell Phone line has a contribution margin percentage of 60%. Of the fixed costs in the Cell Phone line, $30,000 are traceable fixed costs and the remainder are arbitrarily allocated common fixed costs. Which of the following statements is incorrect? Question…Burnham Industries incurs the following costs for the month: Direct materials $2,200 Direct labor 3,100 Factory depreciation expense 3,300 Factory utilities expense 850 CEO's salary 4,000 A. What is the prime cost? $fill in the blank 1 B. What is the conversion cost? $fill in the blank 2
- he following information is derived from the cost sheet of Al Hood Manufacturing & Trading LLC: Manufacturing overhead RO 5,000 Selling & Distribution overhead RO 2,000 Direct material RO 10,000 Direct expenses RO 4,000 Administration overheads RO 1,000 Direct labor RO 3,000 Use the above information and answer 30 MCQs 30. Calculate the amount of conversion cost that is incurred for Al Hood Manufacturing & Trading LLC. a.RO 25,000 b.RO 23,000 c.RO 22,000 d.RO 8,000Within 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 following table provides data concerning a company’s costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.40 Electricity $ 1,400 $ 0.08 Maintenance $ 0.15 Wages and salaries $ 4,900 $ 0.30 Depreciation $ 8,400 Rent $ 1,800 Administrative expenses $ 1,400 $ 0.04 For example, electricity costs are $1,400 per month plus $0.08 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.10 per car washed. Prepare the company’s planning budget for August. Budgeted Cars Washed Revenue Expenses: Cleaning Supplies Electricity Maintenance Wages and Salaries Depreciation Rent Administrative Expenses Total Expenses Net Operating Income $