Please do not give solution in image format thanku Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following tableprovides data concerning the company's costs:Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationAdministrative expenses.RentRevenueExpenses:Fixed Costper MonthCleaning suppliesElectricityMaintenance$1,500$4,500$8,400$2,000$1,600Lavage RapideActivity VariancesFor the Month Ended August 31Wages and salariesDepreciationRentAdministrative expensesTotal expenseNet operating incomeCost perCar WashedFor example, electricity costs are $1,500 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in Augustand to collect an average of $6.50 per car washed. The company actually washed 8,500 cars in August.$0.60$0.09Required:Calculate the company's activity variances for August. (Indicate the effect of each varlance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)$0.30$0.30Saved$0.04H

The activity variance is the difference between the planning budget and flexible budget. The…

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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expens Rent Fixed Cost per Month $1,500 $4,500 $8,400 $2,000 Cost per Car Washed Saved $0.60 $0.09 $0.30 $0.30

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: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Administrative expens Rent Fixed Cost per Month $1,500 $4,500 $8,400 $2,000 Cost per Car Washed Saved $0.60 $0.09 $0.30 $0.30

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1PA: Classify costs Seymour Clothing Co. manufactures a variety of clothing types for distribution to...

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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 Seymour Clothing Co. manufactures a variety of clothing types for distribution to several major retail chains. The following costs are incurred in the production and sale of blue jeans: Shipping boxes used to ship orders Consulting fee of 200,000 paid to industry specialist for marketing advice Straight-line depreciation on sewing machines Salesperson's salary, 10,000 plus 2% of the total sales Fabric Dye Thread Salary of designers Brass buttons Legal fees paid to attorneys in defense of the company in a patent infringement suit, 50,000 plus 87 per hour Insurance premiums on property, plant, and equipment, 70,000 per year plus 5 per 30,000 of insured value over 8,000,000 Rental costs of warehouse, 5,000 per month plus 4 per square foot of storage used Supplies Leather for patches identifying the brand on individual pieces of apparel Rent on plant equipment, 50,000 per year Salary of production vice president Janitorial services, 2,200 per month Wages of machine operators Electricity costs of 0.10 per kilowatt-hour Property taxes on property, plant, and equipment Instructions Classify the preceding costs as either fixed, variable, or mixed. Use the following tabular headings and place an X in the appropriate column. Identify each cost by letter in the cost column.
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 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 $ 0.50 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 income
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 $ 1,200 $ 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.
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