Activity variance |
||
Revenues |
$ 620.00 |
F |
Expenses: |
||
Cleaning Supplies |
$ 60.00 |
U |
Electricity |
$ 5.00 |
U |
Maintenance |
$ 15.00 |
U |
Wages & Salaries |
$ 30.00 |
U |
Depreciation |
$ - |
None |
Rent |
$ - |
None |
Administrative expense |
$ 5.00 |
U |
Total Expenses |
$ 115.00 |
U |
Net Operating Income |
$ 505.00 |
F |
--Workings
Conceptual notes: |
#1: Flexible Budget data is based on 'budgeted rates' applied on 'actual level/output/units' |
#2: Activity Variance = Difference between 'Flexible Budget data' and 'Static/Planned Budget data'. |
* Favourable Variance in case of Revenues occurs when: |
>Flexible budget revenues are MORE than Static/Planned budget revenues [Activity Variance] |
* Unfavourable Variance in case of Revenues occurs when: |
>Flexible budget revenues are LESS than Static/Planned budget revenues [Activity Variance] |
* Favourable Variance in case of Expenses/Costs occurs when: |
>Flexible budget expenses/costs are LESS than Static/Planned budget expenses/costs [Activity Variance] |
* Unfavourable Variance in case of Expenses/Costs occurs when: |
>Flexible budget expenses/costs are MORE than Static/Planned budget expenses/costs [Activity Variance] |
WORKING COLUMNS |
Flexible Budget |
Planning Static Budget |
||||||
Cars washed |
8,600 |
8,500 |
||||||
[C = Fixed + (Var x Actual units)] |
[E= Fixed + (Var x Planned units)] |
|||||||
Fixed part |
+( |
Variable part |
x |
Actual/Planned units |
) |
|||
Revenues |
( |
$ 6.20 |
x |
8600 or 8500 |
) |
$ 53,320.00 |
$ 52,700.00 |
|
Expenses: |
||||||||
Cleaning Supplies |
$ - |
+( |
$ 0.60 |
x |
8600 or 8500 |
) |
$ 5,160.00 |
$ 5,100.00 |
Electricity |
$ 1,100.00 |
+( |
$ 0.05 |
x |
8600 or 8500 |
) |
$ 1,530.00 |
$ 1,525.00 |
Maintenance |
$ - |
+( |
$ 0.15 |
x |
8600 or 8500 |
) |
$ 1,290.00 |
$ 1,275.00 |
Wages & Salaries |
$ 4,100.00 |
+( |
$ 0.30 |
x |
8600 or 8500 |
) |
$ 6,680.00 |
$ 6,650.00 |
Depreciation |
$ 8,500.00 |
+( |
$ - |
x |
8600 or 8500 |
) |
$ 8,500.00 |
$ 8,500.00 |
Rent |
$ 1,800.00 |
+( |
$ - |
x |
8600 or 8500 |
) |
$ 1,800.00 |
$ 1,800.00 |
Administrative expense |
$ 1,300.00 |
+( |
$ 0.05 |
x |
8600 or 8500 |
) |
$ 1,730.00 |
$ 1,725.00 |
Total Expenses |
$ 16,800.00 |
+( |
$ 1.15 |
x |
8600 or 8500 |
) |
$ 26,690.00 |
$ 26,575.00 |
Net Operating Income |
$ 26,630.00 |
$ 26,125.00 |
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility...
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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 $1,400 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.70 $e.es $0.15 $0.40 $4,200 $8,500 $1,800 $1,700 $0.02 For example, electricity costs are $1,400 per month plus $0.05 per car washed. The company expects to wash 8.400 cars in August and to...
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 $ 0.50 Electricity $ 1,200 $ 0.05 Maintenance $ 0.30 Wages and salaries $ 4,500 $ 0.20 Depreciation $ 8,000 Rent $ 2,200 Administrative expenses $ 1,500 $ 0.04 For example, electricity costs are $1,200 per month plus $0.05 per car washed. 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: Fixed Cost per Month $1,200 cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.70 $0.05 $0.15 $0.30 $5,000 $ 8,300 $1,900 $1,400 $0.04 For example, electricity costs are $1,200 per month plus $0.05 per car washed. The company expects to wash 8,400 cars in August and...
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 $1,400 cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.40 $0.09 $ 0.20 $0.40 $4,300 $8,000 $1,800 $1,500 $0.02 For example, electricity costs are $1,400 per month plus $0.09 per car washed. The company expects to wash 8,100 cars in August and...
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 $1,100 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.70 $0.08 $0.30 $0.30 $4,800 $8,200 $2,200 $1,500 $0.03 For example, electricity costs are $1,100 per month plus $0.08 per car washed. The company expects to wash 8,200 cars in August and to...