Lavage Rapide is a Canadian company that owns and operates a large automatic car
ID: 2427957 • Letter: L
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 expected to wash 9,000 cars in August and to collect an average of $4.90 per car washed.
Complete the flexible budget performance report that shows the company’s activity variances and 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
Actual Revenue &spending variance Flexible budget Activity variance Planned budget Revenue 43,080 40(U) 43,120 980)U) 44,100 Expense Cleaning supplies 7,560 520(U) 7,040 160(F) 7,200 Electricity 2,670 150(U0 2,520 30(f) 2,550 Maintenace 2,260 500(U) 1,760 40(F) 1,800 Wages & salaries 8,500 860(U) 7,640 60(F) 7,700 Depreciation 6,000 0 6,000 0 6,000 Rent 8,000 0 8,000 0 8,000 Adm expense 4,950 70(U) 4,880 20(F) 4,900 total expense 39,940 2100(U) 37,840 310(F) 38,150 Net income 3,140 2140(U) 5,280 670(U) 5950
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