Required Complete the flexible budget performance report that shows the company\

Question

Required 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 Flexible Budget Performance Report For the Month Ended August 31 Revenue and Spending Variances Activity Variances Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income

Explanation / Answer

Activity variance = Flxexible budget          - planned budget where   Flexible budget = fixed cost per month + 8,200*cost per car washed Planned budget = fixed cost per month +8,100*cost per cash washed fixed cost cost per 8,300 8,200 per monht car washed Flexible planned Activity variance Revenue 5.9 48970 48380 590 F Expenses Cleaning supplies 0.8 6640 6560 80 U Electricity 1,100 0.09 1847 1838 9 U Maintenance 0.2 1660 1640 20 U Wages and salaries 4,100 0.4 7420 7380 40 U Depreciation 8,400 8,400 8,400 0 N Rent 2,000 2,000 2,000 0 N Administrative expenses 1,500 0.04 1,832 1,828 4 N total expense 17100 1.53 29799 29646 153 U net operating income 19171 18734 437 F Revenue and Spending variance Actual Flexible Revenue & spending Result budget variance Revenue 50,480 48970 1,510 F Expenses Cleaning supplies 7,060 6640 420 U Electricity 1,808 1847 39 F Maintenance 1,880 1660 220 U Wages and salaries 7,740 7420 320 U Depreciation 8,400 8,400 0 N Rent 2,200 2,000 200 U Administrative expenses 1,728 1,832 104 F total expense 30,816 29,799 1,017 U net operating income 19,664 19,171 493 F

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