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 company expects to wash 8,300 cars in August and to collect an average of $6.10 per car washed. The company actually washed 8,400 cars in August.
Required:
Calculate the company's activity variances for August
|
Answer
Activity variance |
||
Revenues |
$ 610.00 |
F |
Expenses: |
||
Cleaning Supplies |
$ 60.00 |
U |
Electricity |
$ 7.00 |
U |
Maintenance |
$ 20.00 |
U |
Wages & Salaries |
$ 20.00 |
U |
Depreciation |
$ - |
None |
Rent |
$ - |
None |
Administrative expense |
$ 3.00 |
U |
Total Expenses |
$ 110.00 |
U |
Net Operating Income |
$ 500.00 |
F |
--Working
WORKING COLUMNS |
Flexible Budget |
Planning Static Budget |
||||||
Cars washed |
8,400 |
8,300 |
||||||
Revenues |
$ 6.10 |
$ 51,240.00 |
$ 50,630.00 |
|||||
Expenses: |
||||||||
Cleaning Supplies |
( |
$ - |
) |
$ 0.60 |
x 8400 or 8300 |
$ 5,040.00 |
$ 4,980.00 |
|
Electricity |
( |
$ 1,100.00 |
) |
$ 0.07 |
x 8400 or 8300 |
) |
$ 1,688.00 |
$ 1,681.00 |
Maintenance |
( |
$ - |
+ |
$ 0.20 |
x 8400 or 8300 |
) |
$ 1,680.00 |
$ 1,660.00 |
Wages & Salaries |
( |
$ 4,500.00 |
+ |
$ 0.20 |
x 8400 or 8300 |
) |
$ 6,180.00 |
$ 6,160.00 |
Depreciation |
( |
$ 8,400.00 |
+ |
$ - |
x 8400 or 8300 |
$ 8,400.00 |
$ 8,400.00 |
|
Rent |
( |
$ 2,200.00 |
) |
$ - |
x 8400 or 8300 |
$ 2,200.00 |
$ 2,200.00 |
|
Administrative expense |
( |
$ 1,300.00 |
+ |
$ 0.03 |
x 8400 or 8300 |
) |
$ 1,552.00 |
$ 1,549.00 |
Total Expenses |
$ 17,500.00 |
$ 1.10 |
$ 26,740.00 |
$ 26,630.00 |
||||
Net Operating Income |
$ 24,500.00 |
$ 24,000.00 |
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 $1,100 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.40 $0.07 $0.25 $0.20 $4,100 $8,400 $2,100 $1,800 $0.04 For example, electricity costs are $1,100 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 $1,100 cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.40 $0.07 $0.25 $0.20 $4,100 $8,400 $2,100 $1,800 $0.04 For example, electricity costs are $1,100 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 $ 0.50 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...
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...
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 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 Cleaning supplies $ 0.70 Electricity $ 1,100 $ 0.05 Maintenance $ 0.25 Wages and salaries $ 4,300 $ 0.20 Depreciation $ 8,400 Rent $ 1,900 Administrative expenses $ 1,500 $ 0.03 For example, electricity costs are $1,100 per month plus $0.05 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 $1,100 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $0.60 $0.05 $0.25 $0.40 $4,700 $8,100 $2,100 $1,700 $0.04 For example, electricity costs are $1,100 per month plus $0.05 per car washed. The company actually washed 8,400 cars in August and collected an...
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 $ 0.70 $ 0.07 $ 0.15 $ 0.20 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 1,400 $ 4,200 $ 8,300 $ 2,200 $ 1,700 $ 0.02 For example, electricity costs are $1,400 per month plus $0.07 per car washed. The...