Lavage Rapide is a Canadian com provides data concerning the company\'s costs pa

Question

Lavage Rapide is a Canadian com provides data concerning the company's costs pany that owns and operates a large automatic car wash facility near Montreal. The following table Fixed Cost per Month Cost per Car Washed $0.50 0.09 $0.20 se.40 nts Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,3ee $4,58e 58,400 $2,200 $1,30e eBook 50.02 Print For example, electricity costs are $1,300 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $5.90 per car washed References The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue Expenses: $ 51,078 cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 4,650 2,017 1,988 8,180 8,480 2,400 1,366 28,913 5 22,1527 Total expense Net operating income Required

Explanation / Answer

Actual Revenue and spending variances Flexible budget Activity variances Planning budget Cars washed 8400 8400 8300 Revenue 51070 1510 F 49560 590 F 48970 Expenses: Cleaning supplies 4650 450 U 4200 50 U 4150 Electricity 2017 39 F 2056 9 U 2047 Maintenance 1900 220 U 1680 20 U 1660 Wages and salaries 8180 320 U 7860 40 U 7820 Depreciation 8400 0 None 8400 0 None 8400 Rent 2400 200 U 2200 0 None 2200 Administrative expenses 1366 102 F 1468 2 U 1466 Total expenses 28913 1049 U 27864 121 U 27743 Net operating income 22157 461 F 21696 469 F 21227

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