Question

3. value 10.00 points Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company's costs: ner Month Car Washed Cleaning supplies Electricity 0.70 $1,200 $ 0.09 $ 0.30 Wages and salaries Depreciation $4.400 $8.200 dministrative expenses 1400 s 0,04 For example, electricity costs are $1,200 per month plus $0.09 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.60 per car washed. The actual operating results for August appear below. Lavage Rapide For the Month Ended August 31 Actual cars washed 8.300 $56,220 Revenue Ex Cleaning supplies Electricity Maintenance 6.240 1.908 2,700 salaries Depreciation Rent 8.200 2,100 1,628 29.996 Administrative expenses- Total expense S26.224 Net operating income Required: Complete the flexible budget performance report that shows the company's activity variances and revenue and spending variances for August. (Indicate the effect of each variance by variance). Input all amounts as positive values.) Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Revenue and Spending Variances Activity Variances Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries. Depreciation Rent Administrative expenses Total expense Net operating income

Answer 1

		Actual	Revenue & spending		Flexible	Activity variance		planned
		Result	variance		budget			budget
cars washed		8,300			8,300			8,200
Revenue		56,220	1,440	F	54780	660	F	54120
Expenses
Cleaning supplies		6,240	430	U	5810	70	U	5740
Electricity		1,908	39	F	1947	9	U	1938
Maintenance		2,700	210	U	2490	30	U	2460
Wages and salaries		7,220	330	U	6890	30	U	6860
Depreciation		8,200	0	N	8,200	0	N	8,200
Rent		2,100	200	U	1,900	0	N	1,900
Administrative expenses		1,628	104	F	1,732	4	U	1,728
total expense		29,996	1,027	U	28,969	143	U	28,826
net operating income		26,224	413	F	25,811	517	F	25,294