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: Fixed Cost per Month Cost per Car Washed Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $ 0.70 $ 0.09 $ 0.20 $ 0.30 S 1,100 S 4,800 S 8,400 $ 2,000 S 1,500 $ 0.01 For example, electricity costs are $1,100 per month plus $0.09 per car washed. The company expected to wash 8,100 cars in August and to collect an average of $6.10 per car washed The actual operating results for August appear below Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenu 8,200 $51,510 Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 6,170 1,799 1,860 7,590 8,400 2,200 1,481 Total expense 29,500 Net operating income $22,010

Explanation / Answer

Revenue and spending variance ;

Revenue 1490 F Expense Cleaning supplies 430 U Electricity 39 F Maintenance 220 U Wages and salaries 330 U Depreciation 0 None Rent 200 U Administrative expense 101 F Total expense 1040 U Net operating income 450 F

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

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