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 Car Washed per Month Cleaning supplies Electricity $0.70 $ 0.09 $ 0.20 $ 0.30 $ 1,400 Maintenance Wages and salaries Depreciation $ 4,500 $ 8,100 $ 2,100 Rent Administrative expenses $1,400 $ 0.03 For example, electricity costs are $1,400 per month plus $0.09 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.30 per car washed.
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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: The difference between being an expense's real and expected (or intended) amount is referred to as…
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…
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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: $ 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: A flexible budget is that budget which includes all the flexibility and change in the output. In…
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Q: Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near…
A: Revenue = Actual cars washed x price per car washed = 840 cars x $6.00 per car = $50400
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A: SOLUTION- OPERATING COST- THEY ARE ONGOING EXPENSES INCURRED FROM THE NORMAL DAY TO DAY OF RUNNING…
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…
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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: Flexible Budget: Flexible budget is the report that adjust as per the changes in the activity and…
Q: help
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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…
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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 Canadian company that owns and operates a large automatic car wash facility near…
A: Given, Number of car wash = 9,000 Total cost = Fixed cost + (variable cost per car wash*Number of…
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: 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: Net operating Income= Revenues- Total expense
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Q: Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility…
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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: Solution: Flexible budget is the budget which represents budgeted cost based on actual level of…
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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 jobThe following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?
- SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?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 $ 0.70 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)Accounting PH enterprises manufactures automobiles accessories and parts. Following are the informationrelating to the production of 3 lakh units.Direct Material cost 2400000rsDirect Labor cost 32,00,000rsVariable factory OH 20,00,000rsFixed factory OH 20,00,000rsThe purchase price of the component is Rs. 30. The fixed OH would continue to be incurred evenwhen the component is brought from outside, although there would have been reduction in thecost to the extent of Rs. 10 lakh. Decide whether the parts should be made or bought underthe current situation If the released capacity can be rented for Rs. 8 lakhSkyler 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…