Lavage Rapide is a Canadian company that owns and operates a large automatic car

Question

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company’s costs:

  

For example, electricity costs are $1,200 per month plus $0.15 per car washed. The company actually washed 8,800 cars in August. The company expected to collect an average of $4.90 per car washed.

  

Prepare a report showing 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 Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company’s costs:

Explanation / Answer

Prepare a report showing the company’s revenue and spending variances for August

Revenue 40 U Expenses : Cleaning supplies 520 U Electricity 150 U Maintenance 500 U Wages and salaries 860 U Depreciation 0 None Rent 0 None Administrative expenses 70 U Total expense 2100 U Net operating income 2140 U

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