Lavage Rapide is a Canadian company that owns and operates a large automaic carw

Question

Lavage Rapide is a Canadian company that owns and operates a large automaic carwash facility near Montreal. The following table provides data conoerning the company's costs: Cleaning supplies Eledtriaty $0.60 $ 0.09 $0.30 $ 0.30 1,200 Wages and salaries Depreciation Rent $ 4,200 $ 8,100 2,200 1,800 $ 0.02 For example, electricity costs are $1,200 per month plus $0.09 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.40 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 8,400 $55,220 5,480 1,917 2,730 7,050 8,100 2.400 1,866 Cleaning supplies Electricity Wages and salaries Rent Administrative expenses Total expense 29.543 Net operating income 25,677 Complete the lexible budget performance report that and spending variances for August Indicate the effect of each variance by selecting "F" for favorable, U" for unfavorable, and "None" for no effect (Le, zero variance), Input all amounts as values.) shows the company's activity variances and revenue 1134

Explanation / Answer

Actual Revenue and spending variances Flexible budget Activity variances Planning budget Cars washed 8400 8400 8300 Revenue 55220 1460 F 53760 640 F 53120 Expenses: Cleaning supplies 5480 440 U 5040 60 U 4980 Electricity 1917 39 F 1956 9 U 1947 Maintenance 2730 210 U 2520 30 U 2490 Wages and salaries 7050 330 U 6720 30 U 6690 Depreciation 8100 0 None 8100 0 None 8100 Rent 2400 200 U 2200 0 None 2200 Administrative expenses 1866 102 F 1968 2 U 1966 Total expenses 29543 1039 U 28504 131 U 28373 Net operating income 25677 421 F 25256 509 F 24747

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