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 | $ | 0.70 | |||||
Electricity | $ | 1,100 | $ | 0.06 | |||
Maintenance | $ | 0.20 | |||||
Wages and salaries | $ | 4,200 | $ | 0.40 | |||
Depreciation | $ | 8,300 | |||||
Rent | $ | 2,100 | |||||
Administrative expenses | $ | 1,500 | $ | 0.02 | |||
For example, electricity costs are $1,100 per month plus $0.06 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.50 per car washed.
The actual operating results for August appear below.
Lavage Rapide | ||
Income Statement | ||
For the Month Ended August 31 | ||
Actual cars washed | 8,300 | |
Revenue | $ | 55,400 |
Expenses: | ||
Cleaning supplies | 6,240 | |
Electricity | 1,562 | |
Maintenance | 1,880 | |
Wages and salaries | 7,840 | |
Depreciation | 8,300 | |
Rent | 2,300 | |
Administrative expenses | 1,564 | |
Total expense | 29,686 | |
Net operating income | $ | 25,714 |
Required:
Calculate the company's revenue and spending 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 RIPIDE | ||||
Revenue and Spending variance | ||||
for the month ended August 31 | ||||
Variance | ||||
Car Wash (Units) | 200 | |||
Revenues | $ 1,450.00 | F | ||
Expenses: | ||||
Cleaning supplies | $ 430.00 | U | ||
Electricity | $ 36.00 | F | ||
Maintenance | $ 220.00 | U | ||
Wages & Salaries | $ 320.00 | U | ||
Depreciation | $ - | None | ||
Rent | $ 200.00 | U | ||
Administrative expense | $ 102.00 | F | ||
Total expenses | $ 1,032.00 | U | ||
Net Operating Income | $ 418.00 | F |
LAVAGE RIPIDE | ||||
Revenue and Spending variance | ||||
for the month ended August 31 | ||||
Budgeted | Actual | Variance | ||
Car Wash (Units) | 8,300 | 8,100 | 200 | |
Revenues | $ 53,950.00 | $ 55,400.00 | $ (1,450.00) | F |
Expenses: | ||||
Cleaning supplies | $ 5,810.00 | $ 6,240.00 | $ (430.00) | U |
Electricity | $ 1,598.00 | $ 1,562.00 | $ 36.00 | F |
Maintenance | $ 1,660.00 | $ 1,880.00 | $ (220.00) | U |
Wages & Salaries | $ 7,520.00 | $ 7,840.00 | $ (320.00) | U |
Depreciation | $ 8,300.00 | $ 8,300.00 | $ - | None |
Rent | $ 2,100.00 | $ 2,300.00 | $ (200.00) | U |
Administrative expense | $ 1,666.00 | $ 1,564.00 | $ 102.00 | F |
Total expenses | $ 28,654.00 | $ 29,686.00 | $ (1,032.00) | U |
Net Operating Income | $ 25,296.00 | $ 25,714.00 | $ (418.00) | F |
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility...
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 Cost per Car Washed Cleaning supplies $ 0.80 Electricity $ 1,200 $ 0.06 Maintenance $ 0.30 Wages and salaries $ 4,000 $ 0.30 Depreciation $ 8,100 Rent $ 2,100 Administrative expenses $ 1,600 $ 0.04 For example, electricity costs are $1,200 per month plus $0.06 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 $1,100 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...
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 $ 0.70 Electricity $ 1,300 $ 0.06 Maintenance $ 0.30 Wages and salaries $ 4,500 $ 0.30 Depreciation $ 8,300 Rent $ 2,000 Administrative expenses $ 1,400 $ 0.04 For example, electricity costs are $1,300 per month plus $0.06 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: 10 Fixed Cost per Month points Cost per Car Washed $ 0.60 $ 0.06 $ 0.15 $ 0.30 $ 1,100 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses eBook Hint $ 4,400 $ 8,100 $ 2,000 $1,500 $ 0.05 Print References For example, electricity costs are $1,100 per month plus...
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 $0.99 $ 0.25 $0.40 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,100 $4,700 $8,100 $2,200 $1,400 $0.03 For example, electricity costs are $1,100 per month plus $0.09 per car washed. The company expects to wash 8,300 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 Cost per Car Washed Cleaning supplies $ 0.80 Electricity $ 1,100 $ 0.09 Maintenance $ 0.15 Wages and salaries $ 4,100 $ 0.20 Depreciation $ 8,300 Rent $ 2,100 Administrative expenses $ 1,700 $ 0.05 For example, electricity costs are $1,100 per month plus $0.09 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 Cost per Car Washed $0.50 $0.10 $0.20 $0.40 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,100 $4,600 $8,100 $1.900 $1,800 $0.01 For example, electricity costs are $1,100 per month plus $0.10 per car washed. The company expects to wash 8,300 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 $0.50 $0.06 $0.15 $0.30 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,200 $4,300 $8,200 $1,900 $1,500 $0.05 For example, electricity costs are $1,200 per month plus $0.06 per car washed. The company expects to wash 8,300 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 $ 1,100 $ 0.07 Maintenance $ 0.15 Wages and salaries $ 4,800 $ 0.30 Depreciation $ 8,400 Rent $ 2,000 Administrative expenses $ 1,600 $ 0.04 For example, electricity costs are $1,100 per month plus $0.07 per car washed. The...