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 | $ | 0.10 | |||||
Wages and salaries | $ | 4,200 | $ | 0.20 | |||
Depreciation | $ | 8,100 | |||||
Rent | $ | 1,800 | |||||
Administrative expenses | $ | 1,600 | $ | 0.05 | |||
For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.80 per car washed.
The actual operating results for August appear below.
Lavage Rapide | ||
Income Statement | ||
For the Month Ended August 31 | ||
Actual cars washed | 8,400 | |
Revenue | $ | 58,540 |
Expenses: | ||
Cleaning supplies | 5,480 | |
Electricity | 2,017 | |
Maintenance | 1,070 | |
Wages and salaries | 6,220 | |
Depreciation | 8,100 | |
Rent | 2,000 | |
Administrative expenses | 1,915 | |
Total expense | 26,802 | |
Net operating income | $ | 31,738 |
Required:
Prepare a flexible budget performance report that shows the company’s revenue and spending variances and activity variances for August.
Actual | Revenue and spending variances | Flexible budget | Activity variances | Planning budget | |||
Cars washed | 8400 | 8400 | 8300 | ||||
Revenue | 58540 | 1420 | F | 57120 | 680 | F | 56440 |
Expenses: | |||||||
Cleaning supplies | 5480 | 440 | U | 5040 | 60 | U | 4980 |
Electricity | 2017 | 39 | F | 2056 | 9 | U | 2047 |
Maintenance | 1070 | 230 | U | 840 | 10 | U | 830 |
Wages and salaries | 6220 | 340 | U | 5880 | 20 | U | 5860 |
Depreciation | 8100 | 0 | None | 8100 | 0 | None | 8100 |
Rent | 2000 | 200 | U | 1800 | 0 | None | 1800 |
Administrative expenses | 1915 | 105 | F | 2020 | 5 | U | 2015 |
Total expenses | 26802 | 1066 | U | 25736 | 104 | U | 25632 |
Net operating income | 31738 | 354 | F | 31384 | 576 | F | 30808 |
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The follow...
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 $ 1,200 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $ 0.40 $ 0.09 $ 0.20 $ 0.30 $ 4,300 $ 8,100 $1,900 $1,300 $ 0.05 For example, electricity costs are $1,200 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: cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Fixed Cost Cost per per Month Car Washed $0.50 $1,200 $0.09 $0.25 $5,000 $0.20 $8,400 $1,900 $1,800 $0.03 For example, electricity costs are $1.200 per month plus $0.09 per car washed. The company expects to wash 8,000 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 $1,500 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.40 $0.09 $0.10 $0.40 $4,000 $8,100 $2.100 $1.800 $0.04 For example, electricity costs are $1,500 per month plus $0.09 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 $ 1,300 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $ 0.60 $ 0.09 $ 0.30 $ 0.20 $ 4,500 $ 8,100 $ 1,900 $ 1,600 $ 0.84 For example, electricity costs are $1,300 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 Cleaning supplies $ 0.70 Electricity $ 1,300 $ 0.09 Maintenance $ 0.25 Wages and salaries $ 4,400 $ 0.20 Depreciation $ 8,400 Rent $ 2,000 Administrative expenses $ 1,700 $ 0.02 For example, electricity costs are $1,300 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 Cost per Car Washed per Month Cleaning supplies Electricity $0.70 $0.07 $0.10 $0.20 $1,300 Maintenance $5,000 $8,300 $1,900 $1,300 Wages and salaries Depreciation Rent Administrative expenses $0.01 For example, electricity costs are $1,300 per month plus $0.07 per car washed. The company expects to wash 8,100 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 $ 1,200 $ 0.09 Maintenance $ 0.20 Wages and salaries $ 4,600 $ 0.30 Depreciation $ 8,200 Rent $ 2,100 Administrative expenses $ 1,500 $ 0.01 For example, electricity costs are $1,200 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 $1,300 cleaning supplies Electricity Maintenance Wages and salaries Depreciation Cost per Car Washed $0.70 $0.07 $0.10 $0.30 $4,100 $8,100 $1,900 $1,600 Administrative expenses $0.04 For example, electricity costs are $1,300 per month plus $0.07 per car washed. The company expects to wash 8,400 cars in August and to collect...
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 $ 0.08 Maintenance $ 0.25 Wages and salaries $ 5,000 $ 0.30 Depreciation $ 8,100 Rent $ 2,100 Administrative expenses $ 1,300 $ 0.05 For example, electricity costs are $1,300 per month plus $0.08 per car washed. The...