Question

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. B $0.15 $0.40 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,000 $4,500 $8,200 $1,900 $1,600 $0.02 For example, electricity costs are $1,000 per month plus $0.08 per car washed. The company expects to wash 8.200 cars in August and to collect an average of $6.10 per car washed.

Answer 1

	Actual	Revenue and spending variances		Flexible budget
Revenue	52120	1490	F	50630
Expenses:
Cleaning supplies	4600	450	U	4150
Electricity	1626	38	F	1664
Maintenance	1470	225	U	1245
Wages and salaries	8140	320	U	7820
Depreciation	8200	0	None	8200
Rent	2100	200	U	1900
Administrative expenses	1664	102	F	1766
Total expenses	27800	1055	U	26745
Net operating income	24320	435	F	23885