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 Cost per Car Washed $0.80 $0.15 $0.20 $0.30 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,200 $5,000 $6,000 $8,000 $4,000 $0.10 For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. The actual operating results for August are as follows: Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,800 $ 43,080 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income 7,560 2,670 2,260 8,500 6,000 8,000 4,950 39, 940 3, 140 $

Answer 1

Lavage Rapide Revenue and Spending Vairance For the Year Ended October 31 Actula Revenue and Fexible Results | Spending Vairance Budget 8800 8800 Activity Planning Variance Budget 9000 Formula For Felxible Budget Cars Washed 43080 40U 43120 980 U 44100 8800 * 4.90 Service Revenue Expenese Cleaning supplies Electricity Maintenance Wages and Salaries Depreciation Rent Administrative Expense Total Expenses Operating Income 7560 2670 2260 8500 6000 8000 49501 39940 3140 520 U 150 U 500U 860 U 0 None 0 None 70 U 2100 U 2140 U 7040 160 F 2520 30 F 1760 40F 7640 60F 60000 None 80000 None 4880 20 F 37840 310 F 5280 670 U 7200 2550 1800 7700 6000 8000 4900 38150 5950 8800 * 0.80 8800 * 0.15 + 1200 8800 * 0.20 8800 * 0.30 + 5000 6000 8000 8800 * 0.10 + 4000