Correct answer please Do not give solution in image format Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following tableprovides estimates concerning the company's costs:Cleaning suppliesElectricityMaintenanceRentWages and salaries.DepreciationAdministrative expensesFor example, electricity costs should be $1,100 per month plus $0.09 per car washed. The company expects to wash 8,400 cars inAugust and to collect an average of $6.00 per car washed.The actual operating results for August are as follows:Lavage RapideIncome StatementActual cars washedRevenueExpenses:For the Month Ended August 31Cleaning suppliesElectricityMaintenanceRentWages and salaries.DepreciationFixed Cost Cost perper Month Car Washed$0.80$ 0.09$ 1,100$ 4,500$ 8,100$ 1,900$ 1,700Administrative expensesTotal expenseNet operating income8,500$ 52,500$0.30$ 0.407,2201,8262,7608,2208,1002,1001,85232,078$ 20,422$ 0.03 Required:Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances forAugust. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zerovariance). Input all amounts as positive values.)Cars washedRevenueExpenses:Cleaning suppliesElectricityMaintenanceWages and salariesDepreciationRentAdministrative expensesTotal expenseNet operating incomeLavage RapideFlexible Budget Performance ReportFor the Month Ended August 31ActualResults8,500S 52,500S7,2201,8262,7608,2208,1002,1001,85232,07820,422FlexibleBudgetPlanningBudget

Flexible budget is prepared for the actual activities and hence is flexible in nature while planned…

provides estimates concerning the company's costs: Fixed Cost per Month Cost per Car Washed $0.80 $ 1,100 $ 4,500 $ 8,100 $ 1,900 $ 1,700 Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Administrative expenses Rent $ 0.03 For example, electricity costs should be $1,100 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.00 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 Rent Wages and salaries Depreciation Administrative expenses. Total expense Net operating income 8,500 $ 52,500 7,220 1,826 2,760 8,220 $ 0.09 $0.30 $ 0.40 8,100 2,100 1,852 32,078 $ 20,422

provides estimates concerning the company's costs: Fixed Cost per Month Cost per Car Washed $0.80 $ 1,100 $ 4,500 $ 8,100 $ 1,900 $ 1,700 Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Administrative expenses Rent $ 0.03 For example, electricity costs should be $1,100 per month plus $0.09 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.00 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 Rent Wages and salaries Depreciation Administrative expenses. Total expense Net operating income 8,500 $ 52,500 7,220 1,826 2,760 8,220 $ 0.09 $0.30 $ 0.40 8,100 2,100 1,852 32,078 $ 20,422

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...

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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 estimates concerning the company’s costs: Fixed Costper Month Cost perCar Washed Cleaning supplies $ 0.80 Electricity $ 1,200 $ 0.15 Maintenance $ 0.20 Wages and salaries $ 5,000 $ 0.30 Depreciation $ 6,000 Rent $ 8,000 Administrative expenses $ 4,000 $ 0.10 For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 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 8,800 Revenue $ 43,080 Expenses: Cleaning supplies 7,560 Electricity 2,670 Maintenance 2,260 Wages and salaries 8,500 Depreciation 6,000 Rent 8,000…
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 Costper Month Cost perCar Washed Cleaning supplies $ 0.80 Electricity $ 1,200 $ 0.15 Maintenance $ 0.20 Wages and salaries $ 5,000 $ 0.30 Depreciation $ 6,000 Rent $ 8,000 Administrative expenses $ 4,000 $ 0.10 For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 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 8,800 Revenue $ 43,080 Expenses: Cleaning supplies 7,560 Electricity 2,670 Maintenance 2,260 Wages and salaries 8,500 Depreciation 6,000 Rent 8,000…
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 Costper Month Cost perCar Washed Cleaning supplies $ 0.80 Electricity $ 1,200 $ 0.15 Maintenance $ 0.20 Wages and salaries $ 5,000 $ 0.30 Depreciation $ 6,000 Rent $ 8,000 Administrative expenses $ 4,000 $ 0.10 For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 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.