Ans. | LAVAGE RAPIDE | ||||||
Activity Variances | |||||||
For the Month Ended August 31 | |||||||
Flexible Budget | Activity variance | Planning Budget | |||||
Cars | 8,300 | 8,200 | |||||
Revenue | $50,630 | $610 | F | $50,020 | |||
Expenses: | |||||||
Cleaning supplies | $4,150 | $50 | U | $4,100 | |||
Electricity | $2,247 | $9 | U | $2,238 | |||
Maintenance | $2,075 | $25 | U | $2,050 | |||
Wages and salaries | $7,720 | $40 | U | $7,680 | |||
Depreciation | $8,100 | $0 | none | $8,100 | |||
Rent | $2,000 | $0 | none | $2,000 | |||
Administrative expenses | $1,649 | $3 | U | $1,646 | |||
Total expenses | $27,941 | $127 | U | $27,814 | |||
Net operating income | $22,689 | $483 | F | $22,206 | |||
*Flexible budget is prepared on the basis of actual units. | |||||||
*Fixed expenses remain same as planning budget. | |||||||
*Calculation of Flexible & Planning budget: | |||||||
Flexible Budget | Planning Budget | ||||||
Cars | 8,300 | 8,200 | |||||
Revenue | $6.10 * 8,300 | $6.10 * 8,200 | |||||
Expenses: | |||||||
Cleaning supplies | $0.50 * 8,300 | $0.50 * 8,200 | |||||
Electricity | $1,500 + ($0.09 * 8,300) | $1,500 + ($0.09 * 8,200) | |||||
Maintenance | $0.25 * 8,300 | $0.25 * 8,200 | |||||
Wages and salaries | $4,400 + ($0.40 * 8,300) | $4,400 + ($0.40 * 8,200) | |||||
Depreciation | $8,100 | $8,100 | |||||
Rent | $2,000 | $2,000 | |||||
Administrative expenses | $1,400 + ($0.03 * 8,300) | $1,400 + ($0.03 * 8,200) | |||||
Activity variance = Flexible budget - Planning budget | |||||||
*Increase in revenue or net operating income and decrease in expenses from Planning budget to Flexible budget = Favorable. | |||||||
*Decrease in revenue or net operating income and increase in expenses from Planning budget to Flexible budget = Unfavorable. | |||||||
inputed values are incorrect. Exercise 9-12 Activity Variances (LO9-2] Lavage Rapide is a Canadian company that...
Exercise 9-12 Activity Variances (LO9-2] 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 $0.50 $0.09 $0.10 $0.30 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,000 $4,700 $8,500 $2,000 $1,300 $0.05 For example, electricity costs are $1,000 per month plus $0.09 per car washed. The company expects to wash 8,400...
Exercise 9-13 Revenue and Spending Variances (LO9-3] 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 $1,300 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.70 $0.09 $0.20 $0.30 $4,900 $ 8,100 $2,000 $1,500 $0.04 For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expects...
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 $ 0.60 Electricity $ 1,100 $ 0.07 Maintenance $ 0.20 Wages and salaries $ 4,500 $ 0.20 Depreciation $ 8,400 Rent $ 2,200 Administrative expenses $ 1,300 $ 0.03 For example, electricity costs are $1,100 per month plus $0.07 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 $1,400 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 Cost per per Month Car Washed Cleaning supplies $0.60 Electricity $1,500 $0.09 Maintenance $0.15 Wages and salaries $ 4,300 $0.40 Depreciation $ 8,400 Rent $2,100 Administrative expenses $1,400 $ 0.03 For example, electricity costs are $1,500 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in...
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 $1,300 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Cost per car washed se.se se.es se.20 50.20 $4,600 $8.50 $2.16 Administrative expenses se.as For example, electricity costs are $1.300 per month plus $0.08 per car washed. The company expects to wash 8.100 cars in August and to collect an...
Exercise 9-14 Prepare a Flexible Budget Performance Report [LO9-4] 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 $ 0.60 Electricity $ 1,300 $ 0.09 Maintenance $ 0.15 Wages and salaries $ 4,900 $ 0.40 Depreciation $ 8,400 Rent $ 1,900 Administrative expenses $ 1,700 $ 0.04 For example, electricity costs are...
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 $0.70 $0.06 $0.30 $0.20 cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,300 $ 4,900 $8,300 $2,100 $1,500 $0.04 For example, electricity costs are $1,300 per month plus $0.06 per car washed. The company expects to wash 8,500 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...
Exercise 9-14 Prepare a Flexible Budget Performance Report [LO9-4] 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 $0.68 se.08 $0.30 $9.29 $4,5ee $8, 2ee $1,800 $1,4ee $8.01 For example, electricity costs are $1,200 per month plus $0.08 per car washed. The...