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 $1,400 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Cost per Car Washed $0.se se.06 Se.25 $0.30 $4,800 $8,500 $2, $1,600 se.ei For example, electricity costs are $1.400 per month plus $0.06 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.30 per car washed The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed $ 53,76e Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 4,6ee 1.862 2.290 7,620 8. See 2,200 1.582 28,654 $ 25,106 < Prev 5 of 5 Next > march te 9

Answer 1

Lavage Rapide Flexible Budget Performance Report For the Month Ended August 31 Actual Spending Flexible Results Variances Budget 8,300 Activity Variances Planning Budget Cars Washed (a) 8,300 8,200 $53.760 $1.470 F $52.290 $630 F $51,660 Revenue ($6.30 per cars washed * a) Expenses: Cleaning supplies ($0.50 * a) Electricity [$1,400 +($0.06 * a)] Maintenance (S0.25 * a) Wages and salaries [$4,800 +($0.30 * a)] Depreciation ($8.500) Rent ($2.000) Administrative expenses [$1,600 +($0.01 * a)] Total expense $4.600 $1.862 $2,290 $7.620 $8.500 $2,200 $1,582 $450 U $36 F $215 U $330 U None $200 U $101 F $4,150 $1.898 $2.075 $7.290 $8.500 $2.000 $1.683 $50 U S6U $25 U $30 U - None - None $1 U $4.100 $1.892 $2.050 $7.260 $8.500 $2.000 $1,682 $28,654 $1,058 U $27,596 $112 U $27.484 $25,106 $412 F $24,694 $518 F $24,176 Net operating income (Revenue - Total expense)