Question

Required: Prepare a flexible budget performance report that shows the company's revenue and spending variances and activity variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Results 8,800 Flexible Budget Planning Budget Cars washed Revenue $ 43,080 $ (40) U Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 7,560 2,670 2,260 8,500 6,000 8,000 4,950 39,940 3,140 $

Answer 1

Lavage Rapide Inc Revenue and Spending Vairance For the Year Ended August 31 Fexible Actula Activity Planning Revenue and Spending Vairance Budget Variance Budget Formula Results Cars Washed 8800 8800 9000 Service Revenue 40 U 43120 980 U 8800 * 43080 44100 4.90 Expenese cleaning supplies 520 U 7040 160 F 7200 7560 8800 0.80 150 U 30 F Electricity 2520 2550 8800 0.15 2670 1200 2260 500 U Maintenance 1760 40 F 1800 8800 0.20 Wages and Salaries Depreciation Rent Administrative Expense Total Expenses Operating Income 8500 8800 * 0.30 5000 860 U 7640 60 F 7700 0 None 6000 6000 0 None 6000 6000 8000 8000 0None 0 None 8000 8000 4950 70 U 8800 4880 20 F 4900 0.10 4000 38150 39940 2100 U 37840 310 F 3140 5280 670 U 2140 U 5950