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 Cost per Car Washed $0.40 $0.10 $ 0.15 0.20 Fixed Cost per Month Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses $1,300 $4,600 $ 8,100 $2,200 $1,700 0.01 For example, electricity costs are $1,300 per month plus $0.10 per car washed. The company actually washed 8,000 cars in August. The company expected to collect an average of $6.60 per car washed The actual operating results for August appear below Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed Revenue 8,000 $ 52,745 Expenses Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent 3,610 2,220 1,770 7,130 8,100 2,200 1,855 Administrative expenses Total expense 26,885 Net operating income $ 25,860

Explanation / Answer

Actual Revenue and spending variances Flexible budget Cars washed 8000 8000 Revenue 52745 55 U 52800 Expenses: Cleaning supplies 3610 410 U 3200 Electricity 2220 120 U 2100 Maintenance 1770 570 U 1200 Wages and salaries 7130 930 U 6200 Depreciation 8100 0 None 8100 Rent 2200 0 None 2200 Administrative expenses 1855 75 U 1780 Total expenses 26885 2105 U 24780 Net operating income 25860 2160 U 28020

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

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