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 concerming the company's costs: Fixed Cost per Month Cost per Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses 0.60 0.05 $ 0.20 S 0.30 $1,100 4,700 $8,500 2,100 S 1,400 S 0.04 For example, electricity costs are $1,100 per month plus so.05 per car washed. The company actually washed 7,900 cars in August. The company expected to collect an average of $6.50 per car washed The actual operating results for August appear below. Rapide Income Statement the Month Ended August 31 Actual cars washed Revenue 7,900 51,290 Expenses: Cleaning supplies Electricity Maintenance Wages and salaries 5,220 1,635 2,150 7,900 8,500 2.100 1,766 Rent Administrative expenses Total expense 29,271 Net operating income $ 22.019 Required: Type here to search

Explanation / Answer

Revenue and spending variance :

Revenue 60 U expense Cleaning supplies 480 U Electricity 140 U maintenance 570 U Wages and salaries 830 U Depreciation None rent None Administrative expense 50 U Total expense 2070 U Net operating income 2130 U

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