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 expected to wash 9,000 cars in August and to collect an average of $4.90 per car washed. The company actually washed 8,800 cars in August.

  

Compute the company's activity 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

Calcuation of company's activity variances

Total cost                      $38,150                         $37,840                          310(F)

income                            5950                             5280                              670(U)

Planning budget (9000) Flexible budget(8800) Activity variance Revenue    $44,100 $43,120 980(A) Cleaning supplies         7,200       7,040 160(F) Electricity         2550       2,520     30(F) Maintenance        1800        1760     40(F) Wages& salaries         7700        7640     60(F) Depreciation         6000        6000       0 Rent         8000       8000      0 Adm expense         4900       4880     20(F)

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.